The EUR/USD pair rallied in the short term and it seems determined to approach and reach new highs as the Dollar Index is in a corrective phase. Today, the Euro received a helping hand from the Euro-zone ZEW Economic Sentiment which came in better than expected at -59.7 points versus -61.2 points estimates, and from the German ZEW Economic Sentiment. The indicator was reported at -59.2 points compared to -66.7 forecasts.
Still, it remains to see how the pair reacts after the US data. Industrial Production rose by 0.4% in September versus the 0.1% growth expected, while Capacity Utilization Rate came in at 80.3% above the 80.0% expected.
EUR/USD Bullish Momentum!
You knew from yesterday's analysis that the EUR/USD pair could resume its growth after passing above the 0.9806 former high and above the weekly R1 (0.9810). It has retreated in the short term trying to accumulate more bullish energy and now it is about to reach 0.9873 today's high.
This level stands as an upside obstacle. False breakouts could signal a new sell-off in the short term.
EUR/USD Forecast!
As long as it stays above 0.9806 and within the ascending pitchfork's body, the pair could resume its growth. A new higher high, a valid breakout through 0.9873 today's high activates further growth and brings new long opportunities.
