The EUR/USD pair rallied in the short term as the Dollar Index plunged after the US data. Still, the DXY maintains a bullish bias despite the current sell-off. Unfortunately for the USD, the US reported mixed data yesterday.
Today, the Prelim UoM Consumer Sentiment was reported at 59.5 points versus 60.0 expected but better than the revised 58.2 in the previous reporting period. On the other hand, the Euro-zone Final CPI rose by 9.1% matching expectations, while Final Core CPI reported a 4.3% growth as expected.
EUR/USD Upside Pressure!As you can see on the H4 chart, the EUR/USD pair moved sideways between 1.0023 and 0.9955 levels. Now, it has passed above the 1.0023 key resistance but it remains to see if the price action confirms the breakout.
A false breakout may signal that the pair could continue to move sideways. Technically, failing to stay below the median line (ml) signaled that the sellers are exhausted and that we have a strong upside pressure.
EUR/USD Forecast!A new higher high, jumping and closing above 1.0036 could signal further growth. The R1 of 1.0150 and the upper median line (uml) represent major upside targets.
A false breakout through 1.0023 and a new lower low could activate more declines.