- The EUR/USD pair dropped slightly, but the bias remains bullish.
- The upper median line (UML) represents a potential target.
- Escaping from the extended range, the EUR/USD pair signaled an upside continuation.
The EUR/USD price dropped slightly after reaching today’s high of 1.0911. The pair is trading at 1.0888 at the time of writing.
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The USD remains sluggish as the US dollar is bearish. DXY’s deeper drop should force the greenback to lose more ground versus the other major currencies.
Fundamentally, the Flash Services PMI, German Flash Services PMI, and French Flash Manufacturing PMI came in above 50.0 points, signaling expansion. On the other hand, the US Flash Manufacturing PMI and Flash Services PMI came in better than expected but remained deep in the contraction territory.
Later, the German Ifo Business Climate is expected to jump from 88.6 points to 90.2 points. Also, the Bank of Canada could shake the markets today. The Overnight Rate is expected to be increased from 4.25% to 4.50%.
Tomorrow, the US is to release high-impact data. Advance GDP may report a 2.6% growth versus the 3.2% growth in the previous reporting period.
In addition, the Advance GDP Price Index, Durable Goods Orders, Core Durable Goods Orders, Unemployment Claims, New Home Sales, Prelim Wholesale Inventories, and the Goods Trade Balance indicators will be released as well.
EUR/USD price technical analysis: Bullish bias
The EUR/USD pair escaped from the range between 1.0780 and 1.0867 levels. However, the price found resistance at the ascending pitchfork’s upper median line (UML).
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Now, it challenges the median line (ml) and could hit the 1.0867 static support (resistance turned into support). The minor downtrend line is seen as a dynamic support.
The pair could try to resume growth if it stays above these downside obstacles. After testing the weekly pivot point of 1.0840, the price action signaled that the retreat ended and that it could extend its growth. The upper median line (UML) and the 1.0938 represent potential targets.
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