EUR/USD seems undecided in the short term after its failure to confirm a larger decline. Traders are waiting for a bullish spark to be able to drive the price higher again. It remains to see how it will react ahead of the US inflation data.
The pair is in the bullish territory, so an upside breakout above the immediate obstacles could announce further growth. The German Trade Balance was released earlier and the proficit increased from 14.3B to 15.9B, beating 15.7B expected. The US is to release its Final Wholesale Inventories later today but I don't think that it will have an impact.
Tomorrow, the US CPI, Core CPI, and the ECB policy update could shake the markets. Definitely, we'll have high volatility around these high-impact events. EUR/USD retains a bullish bias as the DXY remains under pressure.
EUR/USD Continuation!
EUR/USD is consolidating above the weekly pivot point (1.2175) level. Staying above it may signal that the bulls could take full control. Registering a new higher high and closing above 1.2201 could announce a potential growth towards the R1 (1.2245).
On the other hand, dropping and stabilizing below the pivot point 1.2175 could announce a temporary decline.
The bias remains bullish after its failure to stabilize below 1.2132. Technically, only a potential drop below this level may announce a broader drop.
EUR/USD Outlook!
An H4 bullish candle above the 1.2201 could announce an upside continuation towards the R1 and up to the former highs.
