EUR/USD currently 1.1014, only 3-pips behind to overpass 8th of May's highs since Macron was elected with a continuous re-bounds and rejection for 20-EMA at 1.088. The pair is supported by a strong (H1) trend line and non-top higher highs indicating that the pair is marching for additional gains. There are no macro economic events supporting the rising trend which leaves EURO bullish momentum seeing weakness in U.S Dollar as the Index dipped to 98.45 low with possibilities to clock a new low for 2017.
Apparently, US media's accusations that Trump leaked classified data with Russian Official during last week's meeting keeps adding negative pressure on greenback along with US negative Empire State Manufacturing Index yesterday at -0.1 compared to 5.2 previously. Question marks surrounds US economy performance with mixing data released on weekly basis in addition to political rift between Republicans and Democrats keeps pushing US dollar lower.
Euro awaits major data today but EU flash GDP will take center stage which will set the tone for ECB Interest Rates next meeting and in case positive, Draghi will be cornered having few options whether to increase rates to accommodate inflation figures and QE will be a greasy item on the ECB press conference. Analysts has always pointed out the Draghi favors lower EURO levels with efforts to attract investments, enhancing industrial performance which should increase exports, thus a healthier economy.
Fundamentals:
1- EUR - EU Flash GDP today at 9:00 AM GMT.
2- EUR - German ZEW Economic Sentiment today at 9:00 AM GMT.
3- EUR - Trade Balance today at 9:00 AM GMT
4- USD - Building permits today at 12:20 PM GMT.
Technical overview:
Trend: Bullish / Sideways
Resistance levels: R1 1.1041, R2 1.1081, R3 1.1138
Support levels: S1 1.0953, S2 1.0919, S3 1.0881
Comment: Current weaker U.S Dollar is giving room for EUR/USD to rally further more. EU Data will bring new inputs on how the EURO will perform for the next hours. Current weak U.S Dollar gives the chance for Building Permits today to have a higher impact as a spark. Expect setbacks from R1 level which in case penetrated, look for further bullish waves seeing R2 as a target. Dips should fight S2 and S3 levels. closing below S3 alerts for trend reversal.
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