The EUR/USD pair continues to stay inside of a narrow range pattern as the Dollar Index is moving sideways as well. The current range-bound movement cannot continue forever, so you have to be ready when the price escapes from this chart formation.
Today, the price will be driven by the fundamentals. The US PCE Price Index is expected to register a 0.4% growth, Durable Goods Orders could rise by 1.9%, while Core Durable Goods Orders may report a 0.6% growth. Moreover, the Unemployment Claims is expected at 200K in the previous week, while the New Home Sales could increase from 745K to 770K.
EUR/USD Downtrend Line Failed To Hold!
EUR/USD is trapped between 1.1374 and 1.1235 levels. Its failure to come back down towards 1.1186 signaled potential growth at least towards 1.1374. Also, its failure to stabilize below the downtrend line indicates strong upside pressure.
Consolidating above the 23.6%, 1.1300, and above the R1 (1.1324) could announce potential uside continuation. As you already know from my previous analyses, EUR/USD could develop a bullish reversal.
EUR/USD Forecast!
Jumping, closing, and stabilizing above the 1.1374 and above the 38.2% retracement level could announce a larger leg higher. This scenario could bring new long opportunities.
