FX.co ★ EUR/USD: upside scenario taking shape

The EUR/USD pair ended its downside movement and now is fighting hard to come back higher. It's trading at 1.0982 at the time of writing above yesterday's low of 1.0964. DXY's sell-off should force the currency pair to come back higher.

Fundamentally, the US reported mixed data yesterday. Still, the greenback took a hit from the CB Consumer Confidence which dropped to 101.3 points from 104.1 points. Today, the US economic figures could be decisive again. Durable Goods Orders may report a 0.7% growth, while Core Durable Goods Orders could fall by 0.2%. In addition, Good Trade Balance, and Prelim Wholesale Inventories data will be published as well. Only positive US figures could save the greenback from the downside.

EUR/USD Sell-Off Ended!

Technically, the rate found support on the weekly pivot point of 1.0970 and on the uptrend line. You knew from my previous analysis that the sell-off could be stopped by these downside obstacles.

It has registered only false breakdowns below the mentioned obstacles and now it has rallied. After its massive drop, new bullish momentum was natural.

EUR/USD Forecast!

The false breakdowns below the uptrend line confirmed that the sell-off is over and represented a buying opportunity. The first upside target is seen at the weekly R1 (1.1020).