EURUSD: Mid Term Analysis after US Inflation

Hi everyone!
Today we look at the $EURUSD pair following the US inflation data released yesterday. First of all, I share this idea with you based on my analysis about the Dollar Index ($DXY) which you can see below, that said, we know that there is an inverse correlation between $EURUSD and $DXY, so if we have a bullish view on the dollar, we need to have a bearish view on the EURUSD pair (see chart below). From a technical point of view, looking at $EURUSD it is possible to have a "Head and Shoulders" formation in the mid term, and if this analysis is correct, the first bearish leg should reach 1.05 area and subsequent technical rebound developing Right Shoulders. At the same time, we should develop something like ABC Pattern for EW Traders. In conclusion, we must not forget one very important thing, the trend on daily chart is bullish, so going short on this pair is risky at the moment, so you need a small size and a good Money Management... but this is just my opinion opinion...
Today we have Retail Sales to follow, and if we look intraday chart we see important support area around 1.067, if it fails, our potential neckline area should be reached, conversely, we will see important technical bounce, let's see what happens and if there will be the conditions, I will post a new update.

EURUSD/DXY

DOLLAR INDEX Analysis
(Click and Play on Chart below)

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N.B.: Updates will follow below

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...still bearish

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The Dollar Index ($DXY) is still well supported (TA & FA) in near term. ECB Interest Rate Announcement will be released on March 16, but pay attention to this event, when the news is already public, the market may react in the opposite direction...

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We have already hit the first Target (Neckline Area), but today will be the key session. The market awaits NFP release that could affect the FED's monetary policy choices on March 22nd, so NFP will most likely be our driver for the next 2 weeks. Having said that, from a technical point of view, I try to interpret the daily chart showing support and resistance areas. Please continue to support me and I will post an update after NFP release. 🚀🚀🚀

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The strong NFP data appears to be tempered by declining Average Hourly Earnings, but what doesn't make much sense is the analyst consensus that they expect interest rates to rise 0.25bp. If we follow the reaction of the EURUSD pair it doesn't seem so marked, but the U.S market has yet to open, so let's wait a few hours. First resistance around 1.06650.
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