EURUSD Breaking Out?
So, on the back of yesterday’s CPI release in the US it seems it was the bearish USD scenario which played out, triggering the EURUSD breakout idea. Price is now on course to test the initial target at 1.1527, currently grappling with the bear channel top.
Given that this is initially a short-term breakout idea, it’s important to monitor price action as we test this zone as this is likely to be a place where we see longer term EUR bears reloading now that weaker stops have been triggered on the break higher. However, ‘Go with the flow’ is the motto, as always, and with the retail market more than 70% long, there is room for the current rally to advance while the 1.3377 level holds as support.
Keep An Eye On
US PPI today will be the main driver of price action. However, given that yesterday’s US CPI beat was unable to fuel Dollar upside it seems that we are likely in for more of the same, with USD likely to continue to take on water, keeping the path open for further EURUSD upside here.