The EUR/USD pair rallied in the morning and it climbed as much as 1.0197. Now, it is trading at 1.0135 at the time of writing. After its strong rally, a temporary retreat was natural. It tries to test and retest the near-term support before jumping higher.
As you already know, the pair turned to the upside as the Dollar Index is in a corrective phase. Today, Italian Industrial Production rose by 0.4% versus the 0.0% growth expected. Tomorrow, the Euro-zone ZEW Economic Sentiment and the German ZEW Economic Sentiment could bring some volatility. Still, the US inflation figures represent the week's most important event.
EUR/USD Rallied As Expected!
EUR/USD found resistance at 1.0197 and now it is about to reach and retest the 1.0090 key support. As long as it stays above this level and above the uptrend line, the price could come back higher.
The retreat could be only temporary and short-lived. After escaping from the range pattern, the price could extend its growth.
EUR/USD Forecast!
Testing and retesting 1.0090 and the uptrend line, and registering false breakdowns through these support levels could bring new long opportunities as the EUR/USD pair could develop a fresh bullish momentum.
Also, a new higher high, jumping and closing above 1.0197 could activate further growth, an upside continuation.
