- The bias remains bullish, so further upside is natural.
- Removing the resistance level activates further growth.
- American data should bring sharp developments tomorrow.
The EUR/USD price is struggling hard to continue its growth. The pair is trading at 1.0859 at the time of writing, below today’s high of 1.0865. The bias is generally bullish, so further upside is still possible as the US dollar is under pressure.
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Yesterday, German industrial production and the Eurozone Sentik Investor Confidence came in better than expected, while the German trade balance disappointed.
Today the US will release the RCM/TIPP Economic Optimism and the NFIB Small Business Index, but these are low-impact events. Still, the price could post strong moves ahead of US inflation numbers.
CPI m/m could register a growth of 0.3% in March. The CPI is expected to register a year-on-year growth of 3.4%, while the Core CPI could announce a growth of 0.3%. Stronger data should boost the dollar as the Fed could keep monetary policy unchanged at its next meeting.
On the contrary, lower inflation can weaken the dollar. Also, the US will release a report of the minutes of the FOMC meeting, which is a high-impact event. Due to the uncertainty, the EUR/USD pair could experience sharp movements in both directions.
Technical analysis of EUR/USD price: bullish bias
Technically, the EUR/USD price has ended its temporary pullback. It now challenges the upper middle line of descending fairies (uml). This represents dynamic resistance, so staying nearby indicates an imminent breakout.
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The former high of 1.0865 represents static resistance. Removing current resistance levels and making a new higher high can trigger more declines. On the other hand, fresh breakouts should precede a fresh sell-off, at least towards the weekly pivot point of 1.0812.
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