- There is a bullish bias in the short term.
- New highs fuel further growth.
- Tomorrow, US statistics should bring about big developments.
The EUR/USD price reached a high of 1.0752 on Friday and then retreated slightly in the short term. Currently, the pair is trading at 1.0718 at the time of writing.
The US dollar remains under strong downward pressure, which could lead to a significant rally in the euro above last week's highs.
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Essentially, Friday's US revised UoM consumer confidence index was worse than expected, but personal income and core PCE price indexes were in line with expectations.
The US dollar was helped by the personal spending index, which reported growth of 0.8%, compared to expectations for growth of only 0.6%. The euro remains strong in the short term, even though Germany's preliminary CPI grew by only 0.5% compared to the expected 0.6% growth.
Additionally, Spain's flash CPI was also worse than expected. Tomorrow's data docket will feature the Eurozone's preliminary GDP, CPI and core CPI, as well as Germany's preliminary GDP, retail sales and unemployment rate changes.
However, US economic indicators can have a significant impact on the market. The CB Consumer Confidence Index and Employment Cost Index represent high-impact events. Meanwhile, investors are looking forward to this week's FOMC and NFP events.
EUR/USD price technical analysis: solid after rally
From a technical perspective, the EUR/USD price is trapped between the 1.0678 and 1.0750 levels. In the short term, the bias is bullish, so the current range is considered a potential bullish continuation pattern.
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The price seems to be undetermined, which means that the lateral extension is advantageous. As you can see on the hourly chart, the price retested the median line (ml) and accumulated more bullish energy. However, only a new high and a valid breakout above 1.0752 can trigger an upside continuation.
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