The EUR/USD pair climbed as much as 1.0671 today where it has found resistance. Now, it has slipped lower and it's trading at 1.0642 at the time of writing. The bias is bullish, so further growth is natural.
As you already know, fundamentally, the USD took a hit from the US inflation figures. The CPI and Core CPI reported lower inflation in November. Lower inflation helps the FED to deliver lower hikes.
Today, the FOMC Statement, FOMC Economic Projections, and the FOMC Press Conference could bring sharp movements and high volatility. The Federal Funds Rate is expected to be increased from 4.00% to 4.50%. Tomorrow, the US retail sales data and the ECB could shake the markets.
EUR/USD Bullish Bias Intact!
Technically, the bias remains bullish as long as it stays above the uptrend line and above 1.0594. After yesterday's rally, a minor retreat was natural. The EUR/USD pair could register sharp movements in the short term.
Testing and retesting the R1 (1.0600), 1.0594, and the uptrend line may announce a new bullish momentum.
EUR/USD Forecast!
Coming back to test and retest the support levels and making only false breakdowns may announce new upside movement at least towards the R2 (1.0680). This is seen as a first long opportunity.
A new higher high, a valid breakout through the R2 (1.0680) is seen as a buying opportunity as well. Only dropping and stabilizing below the near-term downside obstacles may invalidate an upside continuation.
