As the Dollar Index plunged, the EUR/USD pair edged higher in the last hours. DXY's deeper drop after ignoring 112.14 may signal that the USD could lose significant ground versus its rivals in the short term. Technically, the currency pair moved sideways in the short term signaling exhausted sellers.
Fundamentally, the USD took a hit on Friday when the Retail Sales indicator reported a 0.0% growth versus the 0.2% expected. Also, it seems that higher inflation reported by the US weakened the greenback. Today, the US Empire State Manufacturing Index was reported at -9.1 points far below the -4.3 expected and compared to -1.5 in the previous reporting period.
Tomorrow, the Euro-zone ZEW Economic Sentiment, German ZEW Economic Sentiment, and the US Industrial Production and Capacity Utilization Rate could move the price.
EUR/USD Strongly Bullish!As you can see on the H1 chart, the rate registered only false breakdowns below 0.9669 static support after the US inflation publication signaling exhausted sellers. The rate signaled that the downside movement could be over and that the buyers could take the lead.
EUR/USD accumulated more bullish energy above the 0.9720 pivot point. Now, it has ignored the 0.9806 former high and the R1 (0.9810) upside obstacles.
EUR/USD Forecast!The current breakout above 0.9806 is seen as a long opportunity as the price could extend its growth at least towards the R2 (0.9900). The EUR/USD pair could extend its growth as long as it stays within the ascending pitchfork's body. The 1.0000 psychological level and the median line (ml) represent upside targets.