The EUR/USD pair rallied in the short term and it seems determined to reach the near-term resistance levels. It was located at 0.9953 at the time of writing far above the 0.9875 today's low. The Dollar Index plunged after its strong rally and after reaching fresh new highs, that's why the USD depreciated.
Technically, the EUR/USD pair maintains a bearish bias. The rebound could be only temporary ahead of the ECB. Today, the German Industrial Production, Italian retail Sales, Final Employment Change, and the Revised GDP came in better than expected.
The currency pair jumped higher after the BOC increased the Overnight Rate from 2.50% to 3.25%. Tomorrow, the ECB is expected to increase the Main Refinancing Rate from 0.50% to 1.25%. The ECB Press Conference and the Monetary Policy Statement could really shake the markets.
EUR/USD Strongly Bullish!Technically, the price found support on the weekly S1 (0.9880) and on 0.9877 and it has just rebounded. Still, the bias remains bearish as long as the pair stays below the downtrend line and under the 0.9880 static obstacle.
In the short term, it continues to move sideways. Tomorrow, the EUR/USD pair could register sharp movements in both directions. The 1.0000 psychological level represents an upside obstacle as well.
EUR/USD Forecast!A valid breakout above the downtrend line and above 0.9980 activates more gains and helps the buyers to go long again.
False breakouts through these levels may signal a new sell-off. A new lower low, a valid breakdown below 0.9877 activates more declines.