EUR/USD Forecast: trending higher along a bullish channel, EZ GDP and US macro data in focus

The EUR/USD pair built on its recovery move from three-week lows set last Friday and so far, traded with a positive bias for the third consecutive session on Wednesday. The US Dollar remained on the back-foot and has been one of the key factors behind the pair's upward trajectory back closer to the 1.2400 handle. 

Investors now look forward to another set of US macro data - the latest consumer inflation figures and monthly retail sales, for some immediate respite for the USD bulls. Ahead of today's key event, traders are likely to take cues from Deutsche Bundesbank President Jens Weidmann's comments and the release of Euro-zone flash GDP estimates, later during the European session.

Technically, the pair has been trending higher within a short-term ascending trend-channel formation on the 1-hourly chart. Hence, a follow-through buying interest beyond the 1.2400 handle, leading to a subsequent break through the channel resistance, currently near the 1.2415-20 region would mark a fresh bullish break-out and pave the way for an extension of the pair's bullish momentum back towards reclaiming the key 1.2500 psychological mark. 

On the flip side, immediate support is pegged near the 1.2360 region, which if broken would invalidate the bullish channel and turn the pair vulnerable to head back towards retesting the 1.2300 handle. A follow-through selling pressure has the potential to continue dragging the pair further towards its next support near the 1.2245-40 region. 

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