EUR/USD rallied ahead of the United States inflation data. It has increased as much as 1.1845 level but now it has slipped lower trying to test and retest the immediate support levels.
I've told you yesterday that EUR/USD could still increase after invalidating a breakdown below the near-term downside obstacles. The price has dropped a little only because the Dollar Index has rebounded from 92.32 today's low. As you already know, the US CPI was rose by 0.3% in August versus 0.4% expected, while the Core CPI registered only a 0.1% growth compared to 0.3% estimates.
EUR/USD Validates Its Breakout!
EUR/USD escaped from the minor down channel, flag, and now it has come back to test and retest the broken downtrend line. Staying within the ascending pitchfork's body, above the lower median line (lml), the pair could climb towards the median line (ml) and up to the 1.1900 psychological level.
Coming back above the weekly pivot point of 1.1832 and making a new higher high, a bullish closure above the 1.1845 level could signal further growth.
In the short term, the bias is bullish after failing to stabilize under the upper median line (UML) and after escaping from the down channel pattern.
We may have a new buying signal if the rate jumps and stabilizes above the 1.1845 today's high.