- The bias remains bullish after failing to stay below the pivot point.
- The upper median line (UML) represents a dynamic resistance.
- The US data could shake the markets later today.
The EUR/USD price is trading in the green at 1.0830 at the time of writing. The bias remains bullish despite a temporary retreat.
Yesterday, the Euro received a helping hand from the Eurozone and German ZEW Economic Sentiment data. The economic indicators came in better than expected.
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Still, the USD took the lead again in the US trading session even though the Empire State Manufacturing Index came in worse than expected at -32.9 points versus -8.7 points expected.
Fundamentally, the Canadian inflation data greatly impacted the financial markets. The Consumer Price Index dropped by 0.6%, as expected.
Today, the US is to release high-impact data. Retail Sales may drop by 0.8%, Core Retail Sales could report a 0.5% drop, and PPI is expected to fall by 0.1%, while Core PPI should register a 0.1% growth.
In addition, Industrial Production and Capacity Utilization Rates will be released. Better than expected, US data should lift the greenback. This scenario indicates the EUR/USD pair sell-off. The EUR/USD pair could react after the Eurozone Final CPI and Final Core CPI data.
EUR/USD price technical analysis: Bouncing off the support
The currency pair failed to take out the 1.0780 or stabilize below the weekly pivot point of 1.0780, signaling that the buyers are still in the game. It continues to move sideways between the 1.0867 and 1.0780 levels.
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Only a valid breakout from this range could bring us great trading opportunities. Now, it could approach and reach the descending pitchfork’s upper median line (UML), which stands as a dynamic resistance. It has failed to stabilize above this obstacle in the last attempts, so it remains to see how it reacts around this line.
A valid breakout through it and a new higher high signals further growth. On the contrary, staying below the upper median line (UML) and making a new lower low activates a downside movement.
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