- The EUR/USD pair remains bullish after registering a false breakdown below the range’s support.
- The US data could be decisive today.
- Better than-expected US data could boost the greenback.
The EUR/USD price reversed and erased some of yesterday’s losses. The pair is trading at 1.0608 at the time of writing.
Fundamentally, the pair dipped yesterday as the US reported positive economic data. Still, the bias remains bullish despite temporary drops caused by low and medium-impact data.
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The USD tried to take the lead after the CB Consumer Confidence came in at 108.3 points versus 101.0 expected on Wednesday.
Yesterday, the Final GDP rose by 3.2% exceeding the 2.9% growth expected, while the Unemployment Claims came in at 216K versus the 221K expected.
Today, the fundamentals could move the markets as well. The Canadian GDP is expected to report a 0.1% growth. This could have an impact on the USD as well. Furthermore, the US is to release the Core PCE Price Index, Revised UoM Consumer Sentiment, New Home Sales, Personal Spending, Personal income, Durable Goods Orders, and Core Durable Goods Orders. Better than-expected US data could boost the greenback.
On the other hand, poor US figures could weaken the USD. As you already know, the EUR/USD pair is ranging, so we need strong confirmation before taking action on this market.
EUR/USD price technical analysis: Bearish bias
From the technical point of view, the EUR/USD pair is trapped between the 1.0582 and 1.0662 levels. Escaping from this range could bring us new opportunities. In the short term, it could extend its sideways movement.
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Yesterday’s false breakdown below 1.0582 confirmed a strong support zone and announced a new upside momentum. As you can see on the 4-hour chart, the rate failed to approach and reach the 1.0662 static resistance in the last attempts. Reaching this level could also signal an upside breakout. A valid breakdown below 1.0582 could announce a deeper drop and bring us new short opportunities.
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