- The bias remains bullish as the Dollar Index is bearish.
- A new higher high activates further growth.
- The US CB Consumer Confidence should be decisive.
The EUR/USD price is trading in the green at 1.0948 at the time of writing. The pair is fighting hard to resume its rally as the US dollar remains bearish despite minor rebounds.
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Yesterday, the greenback took a hit from the US New Home Sales economic indicator which came in at 679K versus 724K expected and compared to 719K in the previous reporting period.
Today, the German Gfk Consumer Climate came in at -27.8 points versus -28.2 points expected and above -28.3 in the previous reporting period.
Still, only the United States economic data could change the sentiment in the short term. The CB Consumer Confidence may drop from 102.6 to 101.0 points. This could be bad for the greenback.
In addition, the Richmond Manufacturing Index is expected at 1 versus 3 points in the previous reporting period, HPI could report a 0.4% growth, while S&P/CS Composite-20 HPI may announce a 4.0% growth. The USD needs strong support from the US economy as poor data should weigh down the dollar.
EUR/USD Price Technical Analysis: Supply Zone
From the technical point of view, the EUR/USD price jumped higher after ending its corrective downside. However, it has failed to reach the median line (ml) that shows the buyers are exhausted.
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Now, the pair has reached a supply zone near the 1.0965 former high. It remains to see how it reacts around this static resistance. A valid breakout (a new higher high) may announce further growth towards the median line (ml).
On the contrary, false breakouts through the resistance level may trigger a reversal. Still, a significant drop could only trigger if the price falls below the lower median line (lml).
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