The EUR/USD pair climbed as much as 1.0887 yesterday, registering a new higher high. Now, it has retreated a little which is natural after yesterday's impressive growth. Still, the bias is bullish in the short term despite temporary retreats.
Fundamentally, the currency pair edged higher in the last session as the US reported lower inflation in the last month, while the German and the Eurozone ZEW Economic Sentiment came in better than expected.
Today, the Eurozone Trade Balance came in better than expected, but the Industrial Production disappointed. The USD took the lead in the short term as the US Retail Sales, Core Retail Sales, and Empire State Manufacturing Index came in stronger than expected.
EUR/USD 1.0831 Critical Support!As you can see on the H1 chart, the EUR/USD pair registered only false breakouts above the 1.0881 historical level, signaling exhausted buyers.
Technically, the immediate low of 1.0831 represents a key downside obstacle. As long as it stays above it, the rate could resume its growth. The price increased within an up channel, but now it could retreat after reaching the upside line.
EUR/USD Forecast!A bearish closure below the immediate low of 1.0831 is seen as a selling opportunity. The channel's downside line, the uptrend line stands as a major downside target.