EUR/USD Forecast: On the Verge of a Bullish Breakout

The EUR/USD is in a holding pattern ahead of the important US GDP data and EU consumer and business confidence numbers. The pair has risen to an intraday high of 1.2180, which is the highest it has been this week.

What happened: The EUR/USD appears to be breaking out as traders wait for the second reading of the US GDP data that will come out in the afternoon session. Economists expect the data to show that the American economy expanded by 4% in the fourth quarter after soaring by 33% in Q3. Still, since this is the second reading of the data, analysts don’t expect any significant moves on the EUR to USD pair.

Meanwhile, the European Commission will publish the latest consumer and business sentiment data. Economists expect these numbers to show that the overall sentiment improved in February as the number of coronavirus cases started to fall. Other important numbers that will come today are durable goods, jobless claims, and pending home sales numbers.

EUR/USD technical outlook

The four-hour chart shows that the EUR to USD price is on the verge of a bullish breakout after days of consolidation. The pair is trading at 1.2180, which is the highest it has been since January 25.

Therefore, by breaking out, it sends a sign that bulls are prevailing, which will see them target the next resistance at 1.2200. This is close to the 61.8% Fibonacci retracement level. However, a drop below 1.2150 will send a signal that there are still sellers in the market.