- EUR/USD should approach and reach new highs if it takes out the immediate resistance!
EUR/USD is trading in the green at 1.2202 and is expected to approach and reach new highs soon. The price flirts with a dynamic resistance, so a valid breakout could activate further growth.
The Euro-zone, German, and French manufacturing and services data have come in better than expected lifting the EUR/USD. The pair is strongly bullish ahead of the FOMC and before the US will release the Retail Sales, Core Retail Sales, Flash Manufacturing PMI, and Flash Services PMI economic indicators.
Technically, only a reversal pattern after the US high impact data and events could announce a downside movement. A temporary drop could only help us to go long again.
EUR/USD Strongly Bullish!
EUR/USD is traded above the upper median line (uml) of the ascending pitchfork after retesting the inside sliding line (sl). Closing above the R2 (1.2219) indicates more gains ahead.
The Federal Reserve is expected to keep its Federal Funds Rate at 0.25% in today's meeting. The current upside breakout from the minor range, accumulation, could represent a first bullish signal.
Still, you should be careful around the upper median line (uml) as this dynamic resistance could reject the rate again. A major false breakout with great separation or a huge bearish engulfing could announce exhaustion and a potential correction.
- EUR/USD Trading Conclusion
Closing above the R2 (1.2219) signals further growth towards the R3 (1.2272) or higher to the first warning line (ascending dotted line).
Personally, I believe that only a drop below the median line (ml) of the ascending pitchfork could really bring a great selling opportunity.
