- Its failure to stabilize above the median line (ml) signaled potential drop towards the lower median line (lml).
- The United States inflation data could be decisive tomorrow.
- Taking out the support represented by the pivot point may signal a deeper drop.
The EUR/USD forecast sees the pair moving sideways in the short term between 1.1186 and 1.1374 levels. It could extend its range pattern as the Dollar Index seems undecided. As long as the DXY moves sideways, the currency pair could also print a triangle formation.
From the technical point of view, the EUR/USD pair failed to confirm a larger upwards movement, so the bias remains bearish. It’s traded at 1.1310 level far below 1.1354 yesterday’s high. It remains to see how it will react around the 1.1300 psychological level.
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Fundamentally, the USD received a helping hand from the US Unemployment Claims. The economic indicator was reported at 184K in the previous week below 218K expected and versus 227K in the previous reporting period.
On the other hand, the German Trade Balance dropped unexpectedly from 12.9B to 12.5B, the specialists have expected the indicator to remain steady at 12.89B in October. In my opinion, the EUR/USD traders are waiting for the United States inflation data before taking strong action.
The CPI could report a 0.7% growth in November versus a 0.9% growth in October, while the Core CPI is expected to report a 0.5% growth versus a 0.6% one in the previous reporting period. In addition, the Prelim UoM Consumer Sentiment could jump from 67.4 to 67.9 points which could be good for the USD.
EUR/USD Forecast: Price Technical Analysis – Range Pattern
The EUR/USD pair challenges the 1.1308 weekly pivot point after failing to stabilize above the ascending pitchfork’s median line (ml). Closing and stabilizing below the pivot point may signal strong pressure and more declines.
Also, its failure to approach and reach the 1.1374 resistance announced strong pressure. The ascending pitchfork’s lower median line (lml) is seen as a strong dynamic support.
Technically, its failure to stay above the median line (ml) and to approach and reach the upper median line (uml) may indicate potential drop towards the lower median line (lml).
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