EUR/USD has rallied again signaling that the decrease is complete, the greenback has lost ground again as the Dollar Index has plunged in the last hours. The pair is traded at 1.1413 level and it could resume its upside movement even if the US data have come in better than expected in the last days.
Technically, EUR/USD was expected to climb higher after taking out some important resistance levels, some poor US data later today could weaken the dollar.
EUR/USD has found support at 1.1383 level and right below the 50% Fibonacci line of the minor descending pitchfork and now has come back above the R1 (1.1403) level, a valid breakout above the upper median line (uml) of the minor pitchfork will suggest buying.
The aggressive breakout above the 1.1348 and above the sliding line (SL) has signaled that EUR/USD will register a larger upside movement. Maybe the minor retreat was natural after the last rally and it could give us a great long opportunity.
- EUR/USD Trading Tips
The failure to reach the sliding line (SL), the 1.1348, and to approach the median line (ml) of the minor pitchfork it has confirmed that EUR/USD is strongly bullish as the USDX is under pressure.
A valid breakout above the upper median line (uml) will confirm a further growth towards the 1.1495 and higher towards the R2 (1.1573) level. The 1.1383 - 1.1422 represents a very important resistance area, a valid breakout, and stabilization above this area will validate a further upside movement.
EUR/USD will extend its short term decline only if the USDX rallies after the US data and if the pair drops and stabilizes below the 50% Fibonacci line (descending dotted line) of the minor pitchfork.
