For our analysis today we would take a detailed look at traders’ favorite, the EUR/USD currency pair.
We have a number of reports we are expecting today which may affect the volatility and direction of the pairs movement. First of all, in Europe we have the consumer confidence index, both services and manufacturing PMI for the Eurozone, as well as nation-specific statistics from Germany and France. There are also a number of releases from the United States, more specifically an update on unemployment claims, home sales, again services and manufacturing PMI, and crude oil inventories. If we get unexpected results in any of these reports, this can influence the pair and increase volatility in the price for the EUR/USD.
Even though the pair started off slow yesterday, it managed to approach the new important psychological level of 1.18 that still poses an obstacle for the price. The ECB is still being very careful with the euro, but if the Federal Reserve does not show an intention to increase interest rates in the United States anytime soon, then the bullish trend will persist and the euro will continue to gain on the dollar.
Currently the pair is trading around 1.1806, above the pivot point for the price. If the pair starts dropping, we can see it retreat to the nearby support levels at 1.1781 and 1.1775. The pair already overcame most of its resistance levels. Currently the prognosis given by technical indicators is to buy the pair at the current price.
