The EUR/USD pair continues to move sideways in the short term. The price actions signaled exhausted buyers. Still, the bias remains bullish as the Dollar Index is in a corrective phase. DXY's deeper drop should force the USD to depreciate.
Fundamentally, the Euro received support from the German ifo Business Climate indicator came in better than expected. Today, the German PPI came in worse than expected, while the Eurozone Current Account came in better than expected. On the other hand, the US Building Permits indicator was reported at 1.34M below 1.48M expected, while Housing Starts came in at 1.43M above the 1.40M estimated.
Tomorrow, the US CB Consumer Confidence and the Canadian CPI represent high-impact events and could bring sharp movements.
EUR/USD Seems Undecided!
As you can see on the H1 chart, the rate is still trapped between the 1.0582 and 1.0662 levels. It has dropped below the 150% Fibonacci line after failing to make a new higher high, but the upside pressure remains high as long as it stays above the 1.0594 and 1.0582 levels.
It continues to stay above the weekly pivot point of 1.0610. So, as long as it stays above the downside obstacles, the rate remains bullish despite temporary retreats.
EUR/USD Outlook!
A new lower low, a valid breakdown below 1.0582 activates more declines and brings new shorts.
Staying above the immediate support levels and making a valid breakout through 1.0662 activates an upside continuation and brings new longs.
