The EUR/USD pair is trading in the red at 1.0735 at the time of writing. The rate is moving somehow sideways in the short term trying to accumulate more bullish energy before jumping higher. The bias remains bullish as the Dollar Index is still in that major corrective phase.
As you already know from my analyses, fundamentally, the most important event of the week is represented by the US inflation data release on Thursday. As you probably know, the CPI might register a 0.1% downtick versus the 0.1% growth in the previous reporting period, while Core CPI could increase by 0.3%. Lower inflation in December could weaken the greenback and could send EUR/USD higher.
EUR/USD Retests The Buyers!
Technically, the EUR/USD pair tested and retested the ascending pitchfork's upper median line (uml) which stands as a dynamic support (resistance turned into support). The 1.07606 higher high represents a static resistance.
After its strong rally, a temporary retreat or a consolidation was natural. Still, it remains to see how it will react around 1.0760.
EUR/USD Forecast!
Registering a valid breakout through 1.0760 could confirm further growth towards the 1.08 psychological level and up to the weekly R2 (1.0820). This is seen as a long opportunity.
