EUR/USD is trading in the green at the 1.2113 level and it seems determined to come back higher after retesting the uptrend line. The USDX's decline helped the pair to resume its growth as the greenback plunged.
The pair decreased in the short term after better than expected US inflation data and after the US Unemployment Claims dropped further to 473K in the last week.
It remains to see how EUR/USD will react later today after the United States releases reports on retail sales, Industrial Production, Capacity Utilization Rate, and the Prelim UoM Consumer Sentiment data.
EUR/USD Strongly Bullish!
EUR/USD rallies after retesting the uptrend line and now is trading back above the weekly pivot (1.2106). A jump and close above the 1.2116 static resistance could really signal more gains.
Its failure to stabilize under the downtrend line indicates that EUR/USD could come back higher towards the 1.22 psychological level. Some poor US data today could force the US Dollar Index to drop further, this scenario will boost EUR/USD.
EUR/USD Forecast!
EUR/USD failure to reach the weekly S1 and its aggressive breakout above the weekly pivot (1.2106) is seen as a buying opportunity. The Stop Loss could be hidden below the 1.2051 former low.
The immediate upside target stands at the 1.2176 high. Only a valid breakout above it will signal further growth towards the upper median line (UML). The bias will remain bullish as long as the price is above the uptrend line.
