FX.co ★ EUR/USD: upside continuation favored

The EUR/USD pair continues to move sideways in the short term. Technically, the current range could represent an upside continuation pattern. Still, we need confirmation before taking action. It's trading at 1.1243 at the time of writing above 1.1203 today's low.

Surprisingly or not, the currency pair stays higher even if the US Empire State Manufacturing Index came in at 1.1 points compared to -3.5 points estimated. Tomorrow, the US Retail Sales indicator may report a 0.5% growth, while Core Retail Sales is expected to register a 0.4% growth. Positive US economic figures should help the USD to take the lead again.

Don't forget that the Canadian Consumer Price Index should have a big impact on the USD as well.

EUR/USD Bullish Pattern!

From the technical point of view, the EUR/USD pair is trapped between 1.1243 and 1.1204 levels. You knew from my previous analysis that escaping from this pattern should bring new opportunities.

The upper median line (uml) of the ascending pitchfork represents an upside obstacle, a dynamic resistance.

EUR/USD Forecast!

A valid breakout above the upper median line (uml) activates further growth and is seen as a bullish signal.

On the other hand, a new lower low, a bearish closure below 1.1204 is seen as a selling opportunity.