EUR/USD changed little today as the US Dollar Index has tried to rebound after its sell-off. EUR/USD has registered a strong rally on Friday after the Non-Farm Payrolls release. The bias is still bullish after the price's failure to stabilize under 1.2132 or below the 23.6% retracement level.
The sentiment could change significantly on Thursday around the ECB and after the US inflation data publication. The USD could take the lead again in the short term only if the US data will come in better than expected during the week.
EUR/USD Downside Needs Confirmation!
EUR/USD is pressuring the weekly pivot point (1.2175) level. Passing and stabilizing above it could really validate more gains towards the R1 (1.2246) and up to the former uptrend line.
On the other hand, coming back below the 23.6% retracement level and registering a valid breakdown below the 1.21 psychological level may really activate a corrective phase. The Rising Wedge could be validated if the price will make a new lower low.
EUR/USD Forecast!
Buy EUR/USD if the price jumps and closes above the 1.2185 level, the R1 or the 1.2250 could be used as an upside target.
On the other hand, a selling opportunity may appear if the rate drops and closes below 1.2104. The S2 or the 1.2000 could be used as downside targets.
