EUR/USD Back At Support! Long Opportunity?

EUR/USD plunged in yesterday's session as the US Dollar Index rebounded. Now, the DXY's growth seems over after reaching the immediate downtrend line. It remains to see what will really happen after the US will publish its Prelim GDP, Unemployment Claims, and the Pending Home Sales.

Some poor US data should boost EUR/USD, while better thane expected figures should help the greenback to resume its growth. The Durable Goods Orders and the Core Durable Goods Orders will be published as well, so you should be careful as the volatility will be high.

EUR/USD Ahead Of US GDP!

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EUR/USD dropped after failing to stabilize above the weekly resistance (1.2241). Now it has found support right on the weekly pivot (1.2184) level above the uptrend line.

The bias remains bullish as long as the pair stands above the uptrend line. Retesting it or registering a false breakdown could bring us a new long opportunity. Technically, only a valid breakdown through the uptrend line could signal a temporary downside reversal.

EUR/USD Outlook!

The bias is bullish, so we could still search for long opportunities as long as EUR/USD stays above the uptrend line. A false breakdown with great separation through the uptrend line or a major bullish engulfing could bring a new long opportunity.

The next major upside target stands at the upper median line (UML) of the descending pitchfork.

The material has been provided by InstaForex Company - www.instaforex.com

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