The EUR/USD pair is trading in the green at 1.0078 at the time of writing. The bias remains bullish as the Dollar Index is bearish. DXY’s deeper drop could force the currency pair to approach and reach new highs. You knew from yesterday’s analysis that the price could extend its growth after validating its breakout above parity.
Today, the fundamentals will drive the markets, and the volatility could be high, so the EUR/USD pair could register sharp movements in both directions. The ECB is expected to increase the Main Refinancing Rate from 1.25% to 2.00%. The ECB Press Conference could force the price to register sharp movements, anything could happen.
In addition, the US is to release high-impact data as well. The Advance GDP may report a 2.3% growth versus the 0.6% drop in the previous reporting period. The Unemployment Claims, Advance GDP Price Index, Durable Goods Orders, and Core Durable Goods Orders data will be released as well.
EUR/USD Up Channel!
The EUR/USD pair found resistance at the R3 (1.0090) and now it has retreated a little. Still, the bias remains bullish as long as it stays above the 1.0000 psychological level and above the uptrend line.
So, despite temporary retreats, the EUR/USD pair could still resume its upside movement within the current channel.
Coming back to test and retest the 1.0000 level and the uptrend line could announce a new bullish momentum. Also, a valid breakout through the R3 (1.0090) activates an upside continuation and brings new long opportunities. The channel’s upside line is seen as a potential target.
The upside scenario could be invalidated only by a valid breakdown below the uptrend line.
The material has been provided by InstaForex Company – www.instaforex.com