The EUR/USD pair climbed as much as 1.0893 today where it has found resistance. Now, it has retreated a little and now is trading at 1.0882 at the time of writing. You knew from yesterday's analysis that the price could extend its bullish movement after poor US data.
The bias is bullish, but it remains to see how it reacts after the US data. The ADP Non-Farm Employment Change is expected at 194K, while Prelim GDP may report a 2.4% growth. In addition, the Prelim GDP Price Index, Pending Home Sales, Goods Trade Balance, and Prelim Wholesale Inventories data will be released as well. Poor US figures should lift the currency pair.
EUR/USD Below Static Resistance!
As you can see on the H1 chart, the rate registered an aggressive breakout through the downtrend line and above the 1.0841 static resistance signaling an upside reversal.
It has retreated a little in the short term but it has failed to retest the 1.0841 static support (resistance turned into support) confirming strong upside pressure.
EUR/USD Outlook!
Jumping and closing above 1.0891 activates further growth and is seen as a new buying signal.
