EUR/USD is trading in the green as the Dollar Index is trading in the red. We have a strong negative correlation between USDX (DXY) and EUR/USD. DXY's (USDX) further decline should push EUR/USD higher towards new highs.
The pair has resumed its growth after ending its short-term decline. Registering a new higher high indicates that EUR/USD should continue its upside journey. The US is to release high-impact data during the week, such as the inflation data and the retail sales figures.
Better than expected economic data could help the greenback to increase a little in the short term. Still, is unlikely to have a reversal or a change in sentiment.
EUR/USD Upside Confirmed!
EUR/USD found support on 1.1998 and now is traded far above the downtrend line and beyond the weekly pivot (1.2106) level. The aggressive breakout above these upside obstacles signaled further growth ahead.
Still, the rate could decrease a little in the short term to retest 1.2116 or the pivot point (1.2106) before resuming its upwards movement. The R1 (1.2227), R2 (1.2293), and the upper median line (UML) are seen as upside targets.
EUR/USD Outlook!
A minor decline towards 1.2116 - 1.2100 could bring us a new buying opportunity. EUR/USD could slip lower to retest the immediate support levels before jumping towards R1, R2, and up to the upper median line (UML), around 1.23.
The material has been provided by InstaForex Company - www.instaforex.com