The EUR/USD pair is trading in the red at 1.0917 at the time of writing. After its strong growth, a retreat was natural. Still, the rate could register only a temporary drop, trying to test and retest the near-term support levels before jumping higher.
The price edged higher during the week as the US reported some poor data. Today, the fundamentals should be decisive again. The German Retail Sales and the Eurozone Unemployment Rate, CPI Flash Estimate, and Core CPI Flash Estimate should move the rate in the London session.
Still, in my opinion, only the US economic figures could really shake the price. The US is to release the Unemployment Claims, Core PCE Price Index, Chicago PMI, Personal Spending, and Personal Income. Positive US data and poor Eurozone figures could send the pair down. On the contrary, poor US data should boost the price.
EUR/USD Minor Retreat?
From the technical point of view, EUR/USD climbed as much as 1.0945 where it has found supply again. You knew from yesterday's analysis that taking out the R1 (1.0890) activates further growth.
The retreat could be only temporary. The rate could come back to test and retest the 1.09 psychological level below developing a new bullish momentum.
EUR/USD Outlook!
Testing and retesting the R1 (1.0890), registering only false breakdowns could bring the first buying opportunity. Also, a bullish closure above 1.0945 is seen as a new long opportunity.
