FX.co ★ EUR/USD bullish or bearish?

The EUR/USD pair seems undecided in the short term as the Dollar Index moves sideways as well. The DXY is trapped within a triangle, that's why the pair moves sideways within a similar pattern.

The pair dropped to as low as 1.1260 in the morning as the DXY erased Friday's losses. Still, the EUR/USD pair rebounded in the second part of the day as the Dollar Index weakened again. Fundamentally, the German WPI reported a 1.3% growth today matching expectations.

Tomorrow, the eurozone Industrial Production is expected to register a 1.2% growth after a 0.2% drop. On the other hand, the PPI may register a 0.5% growth, while the Core PPI could rise by 0.4% in November.

EUR/USD could resume its sideways movement ahead of the FOMC and the ECB meetings. These high-impact events could bring us a clear direction.

EUR/USD extends its sideways movement

As you can see on the H4 chart, the pair failed to reach and retest the triangle's support or resistance in the last attempts signaling indecision. Personally, I'll wait for the rate to escape from this formation before going long or short.

As long as it stays under the downtrend line, the bias remains bearish. Only a valid breakout above it and above the triangle's resistance could announce an upside reversal. On the other hand, staying below the 1.13 could force the rate to approach and reach the triangle's support.

EUR/USD prediction

The current sideways movement followed by a valid breakout above the downtrend line could activate a bullish reversal and could bring new long opportunities. On the other hand, a valid breakdown below 1.1238 and under the minor uptrend line could open the door for a deeper drop.