EUR/USD is trading in the green at 1.2142 level and it could resume its growth as the USDX (DXY) is under massive selling pressure. The price has decreased a little to retest the weekly pivot point before jumping higher.
Technically, a minor retreat was expected after Friday's rally. Traders have expected the poor US retails sales data, that's why EUR/USD has started to increase aggressively a few hours before the data dump.
EUR/USD Edges Higher!
EUR/USD increased again after retesting the uptrend line and now is trading above the weekly pivot (1.2126). Now it has retested it and it could try to resume its upwards movement.
The bias is bullish as long as it stays above the uptrend line. The 1.2116 is seen as the immediate support level, while the 1.2176 represents the immediate resistance.
EUR/USD could move sideways in the short term before validating a strong move. The price action indicates a potential Rising Wedge pattern. Still, this pattern could be invalidated by an upside breakout.
Forecast!
Consolidating above the weekly pivot (1.2126) and registering a new higher high, a bullish closure above 1.2151 today's high, could indicate more gains.
A valid breakout above 1.2176 signals a potential upside breakout through the upside line, above the R1 (1.2200). The UML is seen as a major upside target.
The material has been provided by InstaForex Company - www.instaforex.com