FX.co ★ EUR/USD about to reach confluence area

The EUR/USD pair climbed as high as 1.0089 today where it has found resistance. Now, it is traded at 0.9999 at the time of writing. DXY's rebound helped the USD to recover after its short-term depreciation.

The pair rallied ahead and right after the first US data released today. The Core PCE Price Index, Personal Spending, and Personal Income came in worse than expected, thus weakening the greenback. The USD took the lead after Powell's remarks at the Jackson Hole Symposium and after the Revised UoM Consumer Sentiment was reported at 58.2 versus the 55.3 expected.

EUR/USD Below Parity Again!

The EUR/USD pair increased after closing above the downtrend line. Still, the bullish momentum was stopped by the up channel's upside and now it is challenging the parity again.

Breaking above 0.9999 - 1.0018 signaled further growth but it remains to see if the price manages to stabilize above these obstacles. As long as it stays above the uptrend line, EUR/USD could try to come back higher and resume its growth.

EUR/USD Forecast!

The confluence area formed at the intersection between the uptrend line with the downtrend line represents a support zone. False breakdowns through the confluence area may announce a new bullish momentum. Coming back and stabilizing above 1.0018 could bring long opportunities in the short term. 1.01 represents a potential upside target.

A valid breakdown through the confluence area may activate more declines. A valid breakdown below 0.9899 could bring a short opportunity.