FX.co ★ EUR/USD Upside Reversal Incoming!

EUR/USD drops right but this could be only a temporary decline. It has escaped from a reversal pattern, so it could increase soon again. The pair drops right now only because the DXY has rebounded.

The US data could bring a clear direction later today. The CB Consumer Confidence is expected to drop from 127.3 to 123.9 points. A deeper drop could punish the greenback. Moreover, the Durable Goods Orders is expected to increase by 2.1%, while the Core Durable Goods Orders could register a 0.8% growth.

EUR/USD Falling Wedge Confirmation!

EUR/USD has found temporary resistance at the R1 (1.1814) after escaping from the Falling Wedge pattern. Now, is traded at 1.1793 and it's almost to reach the broken downtrend line.

Technically, it has failed to stabilize above the 50% Fibonacci line. Only stabilizing above this dynamic resistance confirms a potential growth. In the short term, the pair moves sideways, so we'll have to wait for a valid breakout above the 1.1824 before jumping towards fresh new highs.

Outlook!

Buy EUR/USD if the price jumps and stabilizes above 1.1830 former high. The major target is seen at the major descending pitchfork's upper median line (UML). The bullish scenario could be invalidated if the pair makes a new lower low.