EUR/USD extended the bullish momentum for the eleven consecutive sessions and prolonged the intensity tone facing crisp US Dollar. Yesterday the pair rallied +113-pips with 1.0987 high and added 3-pips to clock 1.0990 2017-fresh-highs, surpassing 5-EMA (D1) at 1.0941. U.S Data yesterday was positive which gave a lift to US Dollar Index up to 99.33 high, but the Index was tackled by Republicans as they voted a green light on Trump's health-care-bill which was opposed by Democrats, leaving the market divided. As a result, U.S index re-collapsed at 98.54 low, and Euro Index was seen out performing with a 2017 new record 89.07.
The pair is still energized by coming French presidential elections this Sunday, May 7th, and as polls supports Macron (Pro EU) 60%, and Le Pen (Anti EU) 40%, which should boost the pair further during the coming hours.
Today, US Data is loaded, but the main focus will be on NFP, Non-Farm Payrolls, followed by Yellen speech at night. Yesterday positive data, added to today's coming data will set the tone for Mrs. Yellen with expectations of a hawkish tone taking into consideration how US data performed yesterday and will today, with efforts to boost US Index levels higher. Market has seen Trump favoring a lower U.S Dollar, and the fact that Trump and US feds are not in accord grows clearer as events occurs.
Fundamentals:
1- USD - Average Hourly Earnings m/m + Non-Farm Payrolls + Unemployment Rates today at 12:30 PM GMT.
2- USD - Yellen (Head of U.S Fed) speech today at 5:30 PM GMT.
Technical Overview:
Trend: Bullish Sideways
Resistance Levels: R1 1.1002, R2 1.1068, R3 1.1143, R4 1.1205
Support levels: S1 1.0933, S2 1.0859, S3 1.0818, S4 1.0738
Comment: The pair remains bullish with sideways trading. US data today will make a minor correction either positive or negative depending on the outcome. The market pattern gives bull signals for the start of a larger advance. Current congestion over the previous Monday's gap reinforces the upturn and provides a staging level to launch fresh rallies. A breakout over congestion targets a drive to 1.1068 as well as potentially higher. A close under 1.0818 is needed to reject the upturn.