EUR/USD has managed to increase a little after DXY's drop from today's high. It's still trapped within a Falling Wedge pattern, so we have to wait for a valid breakout before taking action.
The US is to release the Building Permits and the Housing Starts tomorrow, while the German PPI and the Euro-zone Current Account could bring life to this pair. The ECB and the manufacturing and services data could be decisive during the week.
EUR/USD Falling Wedge!
EUR/USD failed to reach and retest the Falling Wedge's pattern downside line signaling the downside is somehow limited. It has increased, but it has registered only a false breakout with great separation above the weekly pivot point (1.1817).
In the short term, it could move sideways before making a valid breakout from this pattern. We have to wait for the breakout direction before taking action. An upside breakout and a new higher high could really signal upside reversal.
Forecast!
Jumping and stabilizing above the weekly pivot point (1.1817) and through the downtrend line is seen as a bullish signal!
Only a drop below the weekly S1 (1.1755) could invalidate the bullish scenario.
The material has been provided by InstaForex Company - www.instaforex.com