EUR/USD plunged in yesterday's session as the USDX rebounded after the last amazing drop. The pair's direction is unclear after yesterday's drop, the bearish candle has invalidated a further increase for now.
The pair increases right now, but only because the dollar index is trading in the red, we'll see what will happen in the upcoming hours, and I really hope that we'll have a clear direction. Technically, EUR/USD is still bullish, despite the minor drop, a further upside movement will be validated only by another higher high.
The US Prelim UoM Consumer Sentiment could be decisive today, and better than expected data could help the USD to rise in the short term.
EUR/USD has failed to close and stabilize above the R2 (1.1383) level, and now it is trading again below the upper median line (UML) of the orange descending pitchfork. The pair could drop further in the short term only if the rate stabilizes below the upper median line (UML) and after a valid break below the R1 (1.1243) - 1.1200 levels.
On the other hand, a further increase will be validated after a valid breakout above the R2 (1.1383) level. After it makes another higher high, it may well jump and close above the 1.1422 level.
EUR/USD is bullish, a valid breakout above the UML and most likely above the R2 (1.1383) will really confirm a further increase in the upcoming period. The levels of 1.1466 - 1.1494 are seen as a strong upside obstacle and target. Another higher high will suggest a potential increase also towards the R3 (1.1622) level.
However, a short opportunity could appear if EUR/USD will stabilize below the upper median line (UML). If it makes a valid break below the 1.1200 level, this scenario will announce a drop towards 1.1 again. This scenario will take shape only if the USDX will increase in the upcoming period.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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