EUR/USD rallied in the last hours invalidating further drop at this moment. Still, the pressure is high, it could drop anytime again if the Dollar Index climbs higher after its current retreat. Technically, the pair has increased only because the DXY plunged after making only a false breakout through 92.80 resistance.
Today, the German WPI increased only by 0.5% versus 0.8% expected, while the Italian Quarterly Unemployment Rate dropped from 10.1% to 9.8%, even if the specialists have expected the 10.1% rate.
The EUR/USD stands in a support zone. The US inflation data, the CPI, and the Core CPI could shake the price tomorrow. Better than expected figures could help the greenback to increase. Still, you should be careful, anything could happen around these high-impact data.
EUR/USD False Breakdown!
EUR/USD failed to stabilize below the weekly S1 (1.1778), outside of the ascending pitchfork, and under the upper median line (UML). It's located at 1.1803 level and is fighting hard to stabilize within the ascending pitchfork's body.
In the short term, the bias is bearish. The pair is dropping again and stabilizing below the ascending pitchfork's lower median line (lml). The price action has printed a line inside a downward channel, a flag which could be seen as an upside continuation pattern.
Still, I believe that only staying within the ascending pitchfork's body and making a valid breakout through the weekly pivot point (1.1832) could signal a potential upwards movement.
A potential bullish fly above 1.1851 former high could announce a potential further growth.
On the other hand, a new lower low, a bearish closure below 1.1770 could activate a further downside movement.