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  • The EUR/USD pair is strongly bullish as the DXY is bearish.
  • Taking out the resistance levels may signal further growth.
  • Temporary retreats could bring new long opportunities.

The EUR/USD price rallied after the US inflation data came worse than expected. The pair is trading at 1.0216 and seems determined to reach new highs.

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The greenback lost significant ground versus all its rivals as the US dollar lost ground. The Consumer Price Index reported only a 0.4% growth in October versus the 0.6% growth expected, CPI y/y reported a 7.7% growth, while Core CPI rose by 0.3% in the last most versus the 0.5% growth expected and compared to the 0.6% growth in the previous reporting period. Furthermore, the US Unemployment Claims came in at 225K the previous week versus the 220K expected.

Today, the UK data could have an impact on the EUR/USD pair as well. The GDP reported a 0.6% drop versus the 0.4% drop expected, while Prelim GDP dropped only by 0.2% versus the 0.5% estimated. In addition, the UK Manufacturing Production, Industrial Production, Goods Trade Balance, Construction Output, and Index of Services came in better than expected.

Later, the EU Economic Forecasts could bring more action. Still, the price could have a strong reaction only after the US Prelim UoM Consumer Sentiment publication. The indicator is expected to be 59.5 points, below 59.9 in the previous reporting period.

EUR/USD price technical analysis: Strong bullish phase

EUR/USD price

Technically, the currency pair challenges the ascending pitchfork’s median line (ML) and the channel’s upside line. Taking out these obstacles may signal further growth towards new highs. Stabilizing above the median line (ML) confirms a larger rebound in the upcoming period. Only false breakouts above the upside line and coming back below the median line (ML) could announce a potential sell-off. The pair is bullish, so temporary declines could bring us new long opportunities.

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Breaking above 1.0093 signaled an upside reversal. That’s why personally, I’m looking only for longs on this market in the short term. As you already know, the USD depreciates versus the Euro only because the US reported lower inflation, the US Unemployment Rate jumped unexpectedly higher in October, and now because the Euro is strong.

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