FX.co ★ EUR/USD More Upside In View!

EUR/USD dropped a little in the short term to retest the immediate support levels. The US Dollar Index seems overbought in the short term, so a potential decline should force the pair to increase.

Technically, EUR/USD was somehow expected to increase after the last sell-off. Still, we'll have to wait for a fresh trading opportunity as the price is in a neutral zone right now.

The price has dropped today as the Euro-zone Industrial Production decreased by 0.3% as expected and also because the DXY has increased. Tomorrow, the US Prelim UoM Consumer Sentiment and the Euro-zone Trade Balance could bring some action on EUR/USD.

EUR/USD Found Strong Support

EUR/USD has come back to retest the 50% Fibonacci line and now is struggling to increase. The S1 (1.1708) is seen as critical support, a drop below this level could invalidate a bullish scenario.

In the short term, EUR/USD could move sideways before capturing enough bullish energy. A potential accumulation here could attract more buyers which could lead the rate higher.

Outlook

Making a valid breakout through the 1.1769 could signal further growth in the short term towards the 1.1850 level.