FX.co ★ EUR/USD: imminent breakout and continuation

The EUR/USD pair rallied in the short term and now is trading at 1.0779 at the time of writing. DXY's downward continuation forced the greenback to lose more ground versus its rivals. Technically, the price action signaled an upside reversal but confirmation is needed.

The currency pair edged higher, even though the Eurozone Revised GDP reported a 0.1% drop versus the 0.0% growth estimated. Still, the pair was boosted by the US Unemployment Claims and Final Wholesale Inventories data which came in worse than expected today.

EUR/USD Upside Reversal!

Technically, the EUR/USD pair tested and retested the broken downtrend line and now it has reached the former high of 1.0779. This represents an upside obstacle, so it remains to see how it reacts around this resistance.

The weekly pivot point of 1.0810 and the median line of the ascending pitchfork represent upside obstacles as well.

EUR/USD Outlook!

A valid breakout above 1.0779 may announce further growth. Still, only a bullish closure above the pivot point (1.0810) and through the median line is seen as a bullish signal with a potential target at the upper median line.