the eur usd has made a strong upward breakout of the long term downtrend line with a heavy momentum.
this breakout is confirmed by crossing the fibonacci retracement level of 23.6%.
the next target for the eur/usd pair would be 1.2137 at the Fib level of 50% before continuing its new built up trend to the midterm resistance at 1.2534 which matches perfectly the fibonacci level 38.20% .
the upcoming data are expected to come weaker for tomorrow, with an expected negative GDP and inflation decline in the euro area along with decreasing retail sales in Germany.
however, those events are already priced in, and the market is looking forward to the third quarter expected recovery.
in the united states, the final reading of University Of Michigan Consumer Sentiment for July would emphasise the downward correction in households’ behaviour as the continuous increase in covid-19 new infections in the U.S keeps the fear sentiment among consumers.