EUR/USD is located at 1.1876 below 1.1871 today's high. The pair is still bullish despite the temporary decline. The price has decreased in the short term as the Dollar Index has managed to rebound and recover after its sell-off.
Today, the German Retail Sales reported a 4.2% growth versus 1.9% expected, the German Final Manufacturing PMI increased from 65.6 to 65.9 beating the 65.6 estimates, while the Final Manufacturing PMI jumped from 62.6 to 62.8, exceeding the 62.2 forecasts.
Surprisingly or now, EUR/USD fails to develop a strong growth even if the United States ISM Manufacturing PMI dropped from 60.6 to 59.5. The economic indicator was expected to increase to 60.8.
EUR/USD False Breakdown!
EUR/USD has opened with a huge gap down, but the pair has closed this gap and failing to stay under the weekly pivot point (1.1846). The price failed to approach and reach 1.9087 Friday's high and now it could come back to test and retest the weekly pivot point.
In the short term, the bias remains bullish as long as it stays above the weekly pivot point. The immediate major resistance and target remain at the upper median line (UML).
A temporary consolidation above the pivot point signals more gains and could bring us a new long opportunity.
Trading Conclusion!
Moving sideways above the weekly pivot point (1.1846) could attract more buyers in the short term and could help us to catch a new upwards movement. The bullish scenario could be invalidated by a new lower low, buy a drop below 1.1830 today's low.
The material has been provided by InstaForex Company - www.instaforex.com