FX.co ★ EUR/USD: downside seems over, reversal in cards

The EUR/USD pair turned to the upside as the Dollar Index crashed. The price action signaled that the downwards movement ended and that the buyers could take it higher. An upside reversal is in cards in the short term. The currency pair is trading at 1.0613 at the time of writing.

Fundamentally, the German Import Prices and Spanish Flash CPI came in better than expected. Still, only the US data could really shake the markets today. The Goods Trade Balance could come in at -90.6B, HPI could report a 0.2% drop, Chicago PMI is expected at 45.6 points, while Richmond Manufacturing Index is forecasted to jump from -11 points to -5 points. Though, as you already know from my analyses, the CB Consumer Confidence is seen as a major event. The indicator is expected at 108.5 points above 107.1 points in the previous reporting period.

EUR/USD Challenges 1,0614 Resistance!

Technically, the EUR/USD pair moves somehow sideways between 1.0536 and 1.0614. As you can see on the H1 chart, the rate registered an aggressive breakout through the downtrend line signaling that the downside movement ended and that we may have an upside reversal.

It has retested the 1.0585 - 1.0577 broken resistance zone as well and now it challenges the 1.0614 static resistance.

EUR/USD Forecast!

A valid breakout through 1.0614, making a new higher high activates a larger rebound. This is seen as a new long opportunity.