EUR/USD was on superb performance this week as the pair managed to rally +251-pips with new record for 2017 at 1.1172 high today. EU economic data was neutral bias yesterday as both CPI and Core CPI recorded zero change with both at 1.2% and 1.9% which leaves markets intrigued by the sudden intensive rising for pair. Currently EUR/USD trading 1.1135 as US Dollar Index shows some recovering symptoms but still remains week.
As US political tension continues to re-surface and tightening pace pulling greenback lower as US index plunged today at 97.26 low, the pair found comfort with continuous depressing US dollar levels. EUR/USD bullish momentum has to submit for final two tests this week as U.S release Unemployment Rate, but analyst consider Draghi (ECB) appearance this afternoon is the gear for EURO momentum.
Recently, both Trump and Draghi are seen favoring lower currencies, so the race continues between both opponents. Trump has successfully succeeded in the past two weeks to tackle U.S Dollar, now comes Draghi's turn tonight with a possibility of a dovish or hawkish stance statement depending on how the Gov. sees EU economic coming future convenience.
Fundamentals:
1- USD - Unemployment Rate today at 12:30 PM GMT.
2- EUR - Draghi Speech today at 5:30 PM GMT.
Technical Overview:
Trend: Bullish Sideways
Resistance levels : R1 1.1189, R2 1.1225, R3 1.1285 (D1)
Support levels: S1 1.1110, S2 1.1173, S3 1.1020 (D1)
Comment: The market is bullish with yesterday's breakout over last week's high as well as acceleration higher projecting the drive to 11189. Trade is poised for continuation rallies. A close over 11250+ is bullish. Any corrective dips should only last 1-2 days and stay over 1.1016 to keep strong bull forces. A close under 10956* is needed for a topping turn. U.S Data and Draghi speech today not to be missed in addition to U.S Index levels. Be aware of setbacks as a first test on S&R levels due to high volatility expectations. Keep an eye on U.S politics developments.
MACD indicates bullish momentum (D1)
RSI indicates bullish momentum (D1)
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