The EUR/USD pair rallied in the short term and now it's located at 1.0371 at the time of writing. It has climbed as much as 1.0383 today after the US data. As you already know, the economic data came in mixed today. Fundamentally, the Eurozone and German Flash Manufacturing PMI and Flash Services PMI came in better than expected but remained in the contraction territory.
The US Flash Services PMI came in worse than expected signaling further contraction, while Flash Manufacturing PMI produced a big surprise by dropping to 47.6 announcing contraction in the manufacturing sector as well. In addition, Unemployment Claims came in worse than expected, while Durable Goods Orders, Core Durable Goods Orders, and Revised UoM Consumer Sentiment came in better than expected.
The FOMC Meeting Minutes could bring sharp movements. A dovish report could weaken the greenback.
EUR/USD Retesting The Sellers!
Technically, its failure to drop and close below 1.0226 signaled exhausted sellers even if the price dropped below the uptrend line. Now, it has jumped above the minor downtrend line and it challenges the broken uptrend line and the 1.0368 - 1.0406 resistance zone.
Staying below these levels and registering only false breakouts could announce a sell-off. On the other hand, taking out these levels activates an upside continuation.
EUR/USD Forecast!
A valid breakout above the uptrend line and above 1.0406 signals that the retreat ended and that it could approach and reach new highs. This scenario brings new long opportunities.
