- The EUR/USD pair continues to move sideways. A valid breakout could bring new opportunities.
- A new higher high activated an upside continuation.
- False breakouts may announce a new sell-off.
The EUR/USD price was trading in the red at 1.0224 at the time of writing. After its strong rally, a temporary drop was natural. It could come back to test the critical demand zone.
–Are you interested to learn more about low spread forex brokers? Check our detailed guide-
The price drops as the Dollar Index has managed to rebound after its sell-off. As you already know, the currency pair continues to move sideways, so only a valid breakout from this pattern could bring new trading opportunities.
Today, the fundamentals will drive the markets. That’s why you need to be careful. The Non-Farm Employment Change could be reported at 250K in July versus 372K in June. In addition, the Unemployment Rate could remain steady at 3.6%, while the Average Hourly Earnings may report a 0.3% growth.
The German Industrial Production rose by 0.4% earlier even if the specialists expected a 0.4% drop. In addition, the French Industrial Production and French Prelim Private Payrolls also came in better than expected. Unfortunately for the Euro, the French Trade Balance and the Italian Industrial Production reported worse than expected economic figures.
EUR/USD price technical analysis: Broad range
The EUR/USD pair rallied in the short term but failed to approach the 1.0269 key level. It has failed to stay above 1.0234, signaling that it could come back to retest the descending pitchfork’s upper median line (UML).
–Are you interested to learn more about forex bonuses? Check our detailed guide-
After failing to reach the 1.0119 static support, the currency pair signaled that the sellers were exhausted and that the bulls could take the lead. In the short term, it could continue to move sideways. Still, the high-impact US economic data could force the pair to escape this significant range pattern.
A valid breakout through the 1.0269 and a new higher high could activate further growth. On the other hand, failing to reach this key resistance of registering only false breakouts could announce a new sell-off.
Looking to trade forex now? Invest at eToro!
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.