The EUR/USD pair is struggling to stay higher after dropping a little after its previous swing higher. Technically, a minor retreat was natural, the bias remains bullish. The pair is traded above 1.1400 psychological level. It remains to be seen how it will react as the fundamentals will drive the rate tomorrow.
As you already know, the US is to release its inflation figures which are seen as high-impact events. The CPI is expected to report a 0.4% growth, while the Core CPI could rise by 0.5%. At the time of writing, EUR/USD is trading in the red. The euro was punished by the German Trade Balance today, the indicator was reported at 6.8B below 11.3B expected.
EUR/USD Could Buyers Take It Higher?EUR/USD retested the descending pitchfork's upper median line (uml) and now it has turned to the downside again. The price's failure to come back towards 1.1483 former high indicates that the buyers are exhausted.
1.1482 - 1.1495 area is seen as resistance. Failing to take out this obstacle may announce a new leg down. Don't forget that the DXY is in a temporary drop. It is early to talk about a new leg down. So, only false breakouts above the upside obstacles or a major bearish pattern may announce a new downwards movement.
EUR/USD Outlook!In the short term, a new lower low, a bearish closure below 1.1396 could signal a deeper drop. On the other hand, jumping and closing above the 1.1447 today's high could announce further growth towards the 1.1482 - 1.1495 area. A valid breakout above this zone may activate a larger growth.