EUR/USD drops at the time of writing as the DXY has managed to rebound. The bias remains bullish as the pair is traded above an uptrend line. Also, the Dollar Index could drop anytime again if the US data reports poor figures during the day.
The price started to after the German Ifo Business Climate disappointed after increasing from 96.6 to 96.8 less versus 97.8 expected. EUR/USD could extend its decline if the US Consumer Confidence comes in line with expectations or better today.
EUR/USD Trading In The Red!
EUR/USD has found resistance right below the downtrend line without reaching it. Now it could approach and retest the uptrend line and the weekly pivot (1.2046). It has failed to stabilize above the 150% Fibonacci line signaling bearish pressure.
Still, EUR/USD could jump higher again in the short term to reach the downtrend line before deciding a new direction. The bias is bullish as long as the rate is traded above the uptrend line.
EUR/USD Outlook!
Further growth will be confirmed by a valid breakout above the downtrend line. The major upside target is seen at the upper median line (UML) of the major descending pitchfork.
A new downside movement will be signaled by a valid breakdown through the uptrend line and after the rate invalidates a potential breakout above the downtrend line.
