EUR/USD pair found temporary support around $1.2450 ahead of U.S. Jobless claims and Germany CPI reports releases later in the day and U.S. Retail Sales data scheduled for release on Friday. We maintain our view that the short and long term main trend for the EUR/USD pair remains bearish due to central banks divergences; the ECB is taking steps toward further easing while the Federal is under pressure to hike interest rates
EUR/USD prices formed a bearish flag on H1-Chart; a confirmed break below $1.2435 the lower line will push the price toward the flag potential intraday target at $1.2380 then the second target at $1.2340. The bearish flag is inline with the main bearish outlook of the pair, so any substantial rally will provide good opportunity to “Short” the pair.