EUR/USD has found strong support again and now it seems determined to come back higher. The pair will increase if the US Dollar Index extends and resumes its decline.
The greenback has decreased even if the US PPI and Core PPI have reported better than expected data today. On the other hand, the Eurozone Industrial Production dropped by 1.0%, more versus 0.3% expected.
The pair dropped only because the DXY dropped. Unfortunately, the US inflation growth is bad for the USD.
EUR/USD Double Bottom?
EUR/USD has found support again on the pattern's downside line. It has failed to reach the 88.6% retracement level and now is located above the downtrend line.
Moreover, it has printed also something like a Double Bottom pattern, but this reversal pattern could be confirmed only by a valid breakout above the 1.1881 level. Making a new higher high could validate the Double Bottom and the Falling Wedge patterns.
Forecast!
EUR/USD could slip lower after today's rally. A temporary decline could help us to catch a new upwards movement. It could come back to test and retest the broken levels before jumping higher.
