EUR/USD is trading in the green at the time of writing, but the outlook remains bullish despite the minor drop. It pressures a resistance zone, so we need a valid breakout to be sure that the upside continues.
The next few hours could be decisive for EUR/USD. The eurozone Consumer Confidence is expected to drop from -16 to -18, the economic indicator could bring high volatility and a fresh trading opportunity.
The greenback is trading lower again as the US Unemployment Claims have increased unexpectedly from 711K to 742K in the last week.
EUR/USD Upside Breakout Still Favored!
EUR/USD continues to stay at near the 1.1880 static resistance signaling a buying pressure despite several false breakouts. Please be careful because only a valid breakout above the 1.19 psychological level and through the R1 (1.1921) validates further upwards movement and offers a long opportunity.
The upside scenario could be invalidated by a false breakout with great separation or by a major bearish engulfing pattern printed on the 1.19 level.
- EUR/USD Trading Scenarios
Buy a bullish closure above the R1 (1.1921) with a potential upside target at the R3 (1.2096) level. Technically, the bias is bullish, so an upside breakout is in cards.
Sell a drop below 1.1816 former low having a downside target at the 1.1695 static support.