- The bias remains bullish as long as it stays above the median line (ml).
- Consolidating above the former high could bring new longs.
- The R1 and the upper median line (UML) represent upside targets.
The EUR/USD price jumped as much as 1.0417 today as the US dollar extended its downside movement.
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The greenback remains under strong downside pressure after the US Prelim UoM Consumer Sentiment came in at 54.7 points versus 59.5 expected on Friday. Yesterday, the Euro received a helping hand from upbeat Eurozone Industrial Production. The economic indicator rose by 0.9% exceeding the 0.1% growth forecasted.
Today, the German WPI registered a 0.6% drop versus the 1.2% growth expected, while the French Final CPI rose by 1.0%, matching expectations. Later, the ZEW Economic Sentiment could be reported at -52.0 points, the German ZEW Economic Sentiment could come in at -50.9 points, while Eurozone Trade Balance could increase from -47.3B to -42.3B. In addition, the Flash GDP and Flash Employment Change data will be released as well.
On the other hand, the US is to release high-impact data. The Empire State Manufacturing Index is expected at -6.1 points. PPI could report a 0.4% growth, while Core PPI may register a 0.3% growth.
Dollar Index price technical analysis: Flag broken
The Dollar Index remains under strong downside movement as long as it stays under the descending pitchfork’s median line (ML). Technically, the rate escaped from a minor flag, signaling more declines. DXY’s deeper drop should force the USD to lose more ground than its rivals.
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EUR/USD price technical analysis: Bullish momentum
Technically, the EUR/USD pair rallied after failing to retest the median line (ML) of the ascending pitchfork. Now, it has taken out the 1.0364 resistance and confirmed more gains ahead. As long as it stays above 1.0364, the currency pair could extend its growth. The ascending pitchfork’s upper median line (UML) and the R1 (1.0510) represent upside obstacles and potential targets. The median line (ML) represents dynamic support, so the bias remains bullish as long as it stays above it.
Still, after its strong rally, we cannot exclude a minor retreat. The price could test the 1.0364 before resuming its growth. Consolidating above this level could bring new longs.
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