EUR/USD Breaks Below Trend Line, Next Target 1.1200/1.10000

The EUR/USD consolidates losses below 1.1400, as the US dollar pulls back from yearly highs amid risk-on moods across asset classes and sectors in today's trading session. This is due to investors taking profits after climbing higher than ever before during last week's European Central Bank meeting, where officials announced they would delay any potential tightening measures until this year.

This may very well continue into 2022 if austerity calls go unheeded again by member states like Italy. Italy wants more spending power while others, including Germany, don't feel that way. Because there was little progress made getting closer towards balanced budgets between them over recent years despite several rounds.

IF today's European flash GDP drops and the USA's retail sales print positive, it is time that the EUR/USD will drop below the 1.1350 price zone. Breaking below the 1.1350 price zone will open the door for 1.1200.

1.1200 /1.1150 price zone may play as solid support. So, we may see some corrections. But maybe it would be temporary. Breaking below 1.1150, our final target is 1.1000 very soon.

To the upside, EUR/USD moreover can test the 1.1470 price zone. As long as below 1.1470 price zone, EUR/USD will be considered a downtrend, and we should not think for buy though RSI is holding below 30 levels now.

After breaking above 1.1470 will continue short term buy not before that.