The EUR/USD pair rallied in the last hours and now is trading at 1.0663 at the time of writing far above 1.0528 today's low. The bias was bullish before the US inflation data publication. Fundamentally, the Euro received a helping hand from the German ZEW Economic Sentiment which came in at -23.3 points versus -26.5 points expected and compared to -36.7 in the previous reporting period. In addition, the Eurozone ZEW Economic Sentiment also came in better than expected.
On the other hand, the USD took a hit from the US inflation figures. The CPI rose by 0.1% in November versus the 0.3% growth expected, while the Core CPI registered only a 0.2% growth less versus the 0.3% growth estimated. As you already know, the FED is expected to deliver 50 bps tomorrow. The FOMC represents a high-impact event.
EUR/USD 1.0594 Resistance Was Taken Out!
As you can see on the H1 chart, the EUR/USD pair moved sideways after passing above the 1.0496 - 1.0481 zone. It has consolidated within a minor triangle and now it has edged higher after failing to stay below the uptrend line and under the weekly pivot point (1.0520).
EUR/USD ignored 1.0594 and the weekly R1 (1.0600) which represented upside obstacles. As long as it stays above these levels, the rate could approach and reach new highs.
EUR/USD Forecast!
Breaking above 1.0594 was seen as a new long opportunity. The R2 (1.0680) represents the next upside target and obstacle. Coming back to test and retest 1.0594 and the R1 could bring us new buying opportunities. Testing and retesting the support levels and registering only false breakdowns may announce a new upside momentum.
