EUR/USD recap for 10.05.2018
The Euro broke the descending triangle formation on 23d of April and since then is falling, completing the triangle target to 1.18668 and even dipping a bit lower than that to 1.18223. The movement then made a false breakout and the candle almost completed a Doji figure to imply a future movement up. For two days now the price gained small grounds as balanced profit taking occurred. Yesterday the Euro gained 100 pips to its value. The price opened at 1.18455, wen as high as 1.19458 with a low of 1.18426 just to close at 1.19152 and to call it a day. The movement was forced after the worse than expected CPI and Core CPI as inflationary indicators. Though little they have changed to negative, the Euro gained grounds on these two factors, although the Unemployment Claims showed green actual figures regarding the forecast. This was not enough to support the USD.
Currently the price may try to reach 1.19637 as it is near to the Daily EMA (200). There if the price manages to sustain relative support it may manage to get away from the bottom and try climbing to test the breakout on the triangle at 1.22624. But for the short-term I personally think that the Euro will find a cushion place between 1.18223 and 1.2000 as psychological barrier.
Keep in mind, this still is a correction from the triangle breakout. Longs be careful. Further data and events are needed to firmly conclude for any reversals.