Last week EURUSD broke below a major support level of 1.1200. This level has been important for quite some time and the pair has bounced from the area many times this year.

By breaking below 1.1200, the risk is to the downside. However we also must consider that US Dollar Index could be looking for a correction after a considerable rally. Therefore, we can expect EURUSD to test the trend line which could also coincide once again at 1.1200 level. Breaking above 1.1200 could happen, and a break through to the upside could be possible if Federal Reserve gets dovish this week, If inflation data from Europe is good and/or the US NFP numbers disappoint. If these fundamentals match, the pair could already be above 1.1250 by Friday’s close, and that could turn the overall trend to the upside.
Disclaimer: Our analysis and forecasts given on this website are just our point of view about the market. It is not a trading signal or investment advice. 

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