FX.co ★ EUR/USD trading plan for 27 July

• EUR/USD quickly reverses the initial pessimism and regains 1.1800.
• US Durable Goods Orders came in short of expectations in June.
• US CB's Consumer Confidence, housing data come up next.

Fresh sellers now hit the dollar and propels EUR/USD back above 1.1800 the figure to record new multi-day highs around 1.1820.

EUR/USD now adds to Monday's gains above the 1.1800 yardstick following the fresh bout of selling pressure hitting the dollar.

Moreover, a 4-hour MACD has diverged in favor of the bulls. MACD histograms have produced higher lows, contradicting lower lows on the price chart. That bullish divergence indicates a potential for a corrective bounce which confirms the reversal chart pattern formation (a falling wedge) after a breakout of the pattern.

Indeed, the buck saw its offered note picking up extra pace after US headline Durable Goods Orders expanded at a monthly 0.8% in June, while orders excluding the transport sector expanded by 0.3% from a month earlier, both readings coming in well below previous estimates.