For Traders

Analytical Reviews

Trading plan

12.05.202108:30 Forex Analysis & Reviews: EUR/USD New Upside Momentum!

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

EUR/USD is trading in the green again trying to rebound after the most recent decline. The price was somehow expected to drop after registering an amazing rally. Technically, the pair has come back down to test and retest the immediate support levels before jumping higher.

The US inflation data could be decisive today. The CPI is expected to increase by 0.2% versus 0.6% in the previous reporting period, while the Core CPI could increase by 0.3% in April.

Some poor figures could force the greenback to drop deeper after its temporary appreciation.

EUR/USD Decline Could End Anytime!

EUR/USD found resistance around 1.2177 level and now is trading lower above the 1.2116 static support. The retest of this level was somehow expected after the last rally. It could still reach and retest the weekly pivot point (1.2110) before jumping higher.

The aggressive breakout above the downtrend line signaled that EUR/USD may increase further. The current decline could help us to catch a new upside movement up to the R1 (1.2227).

Forecast!

A false breakdown with great separation or a bullish engulfing printed on 1.2116 or on the weekly pivot (1.2110) could bring a new bullish momentum.

Also, a minor consolidation in the short term followed by a new higher high could signal a new swing higher. The upper median line (UML) is seen as the major upside target.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.