On the daily chart below for EURUSD, we can
see that the price keeps struggling extending the rally above the 1.1033 high.
If the market fails again to break out here, then we may be in front of a big double
top pattern
with the neckline at the 1.0533 level. For now, the buyers keep being in
control with the moving
averages offering support.

Yesterday the US
GDP showed
resilience in consumer spending under the hood and the US
Jobless Claims data beat expectations after several weeks of
misses. This lifted treasury yields as the market repriced the interest
rates cuts expected by the end of the year and boosted the USD.

EURUSD technical analysis

On the 4 hour chart below, we can
see that the whole rally within the rising channel has been diverging with the MACD. This is generally a signal of a
weakening momentum and it’s often followed by pullbacks or reversals.

The price is now again at the
lower bound of the channel, which is the level where we will see a bounce or a
breakout. Today we will have the US PCE and ECI
reports. If the data beats, then we should see a breakout and a quick selloff,
but if the data misses, we should get another bounce and possibly new highs.

On the 1 hour chart below, we can
see that the sellers leant on the black downward trendline to push the price to the lower
bound of the channel. The buyers should be waiting there to enter the market
and target a breakout of the black trendline and ultimately new highs with the
upper bound of the channel in focus. The sellers, on the other hand, will want
to see the price to break down and jump onboard aggressively to extend the
selloff.

This article was written by ForexLive at www.forexlive.com.