EUR/USD edges higher after the DXY has printed a strong sell-off. In my previous articles, I've mentioned that the pair could turn to the upside after reaching a strong support zone. It's traded at 1.1796, far above today's low of 1.1728.
The Dollar Index has reached a former high at 93.19 level, so a drop was imminent. Also, the index failed to stabilize above the 93.00 psychological level. The dollar plunged in the last hours also because the US Prelim UoM Consumer Sentiment was reported lower at 70.2 compared to 81.2 expected.
Moreover, the Prelim UoM Inflation Expectations increased by 4.6% below 4.7% in the previous reporting period. On the other hand, the Eurozone Trade Balance and the German WPI have come in better than expected, while the French Final CPI was reported in line with expectations.
EUR/USD Looks To Trade North
EUR/USD has resumed its growth after retesting the upside 50% Fibonacci line. Jumping above the highs of 1.1753 and 1.1769 signaled strong buyers in the short term. The price is likely to reach the weekly pivot point (1.1804) level which is seen as static resistance.
A temporary decline after the current rally could help us to catch a new upwards movement. Now it is risky to buy as EUR/USD could decrease a little as the dollar Index has reached a support level.
The near-term major resistance is seen at the descending pitchfork's upper median line (UML).
Outlook
Personally, I would like to see a minor decline towards 1.1769. Temporary consolidation and sideways movement could bring great long opportunities with the target at the upper median line (UML) or higher at 1.19 psychological level.
