The EUR/USD pair rallied in the short term as the Dollar Index crashed. It's located at 1.0563 at the time of writing, far above today's low of 1.0490. It has climbed as much as 1.0568 and it seems strongly bullish.

Fundamentally, the German Prelim CPI and Spanish Flash CPI came in line with expectations. On the other hand, the US Final GDP, Final GDP Price Index, and Pending Home Sales reported poor data. Also, the Unemployment Claims came in at 204K in the last week compared to 214K expected, but worse compared to 202K in the previous reporting period. Tomorrow, the US and Eurozone data should move the rate.

EUR/USD 1.0568 Key Resistance!

From the technical point of view, the rate failed to approach and retest the channel's downside line, signaling exhausted sellers. Now, it has passed above the downtrend line, indicating an upside reversal.

Still, after such an impressive rally, the rate could come back to test and retest the broken downtrend line before jumping higher.

EUR/USD Forecast!

Testing and retesting the broken downtrend line, registering only false breakdowns could bring new longs.

Also, a bullish closure above 1.0568 could be seen as a bullish signal. The S1 (1.0590) represents the first upside target.