EUR/USD rallied today increasing as much as 1.1867 level. It has found temporary resistance and now it could slip lower as the US Dollar Index has managed to rebound after its sell-off.
The pair could register a temporary decline before jumping higher again. It has printed a potential Falling Wedge pattern. Still, this pattern is far from being confirmed. The pressure remains high as long as it stays under the immediate downtrend line.
The pair increases right now even if the US Unemployment Claims have come in worse than expected. The indicator was reported higher at 373K versus 345K estimate.
EUR/USD New Decline!
EUR/USD has reached the downtrend line where it has found resistance. It's trading at 1.1837 and it could approach new lows if the DXY resumes its throwback.
It was almost to reach the weekly pivot point (1.1872). Its failure to do that signals that the buyers are exhausted and that the price could come back down.
Making a valid breakout above the downtrend line may signal a potential upwards movement. Validating the Falling Wedge pattern could bring us a new buying opportunity and could announce a bullish reversal.
Forecast!
A valid breakout from this reversal pattern could signal an upside movement towards the 1.2 psychological level.
