The EUR/USD pair rallied in the short term, but a larger growth is far from being confirmed. The greenback lost significant ground versus its rivals as the Dollar Index crashed. Technically, the rate is challenging an important resistance, so it remains to see how it reacts.
The price jumped higher even if the Italian Industrial Production reported a 0.7% drop versus the 0.2% drop estimated. Tomorrow, the German and Eurozone ZEW Economic Sentiment indicators could report worse data compared to the previous reporting period. This could be bad for the Euro.
The US CPI and Core CPI should really shake the markets on Wednesday. Higher inflation could lift the greenback.
EUR/USD Range Breakout!
As you can see on the H1 chart, the rate is trapped between 1.0748 and 1.0685 levels. Jumping above the downtrend line, the pair signaled a potential reversal.
Personally, I've drawn an ascending pitchfork. The lower median line (lml) represents a dynamic support. As long as it stays above it, the rate could jump higher.
EUR/USD Outlook!
Jumping and closing above today's high of 1.0759 activates further growth and represents a buying signal.
