EUR/USD has been impulsively bullish forming a non-volatile trend since it broke above the 115.00 resistance level recently. The Eurozone has posted some upbeat economic reports recently whereas USD is on losing streak amid bad economic reports which can be observed currently in the market. Though there are certain hints of USD expecting a rate hike, EUR seems to dominate further with hawkish ECB statements and positive economic reports. Today the German Retail Sales report was published with an increased value of 1.1% from the previous value of 0.5% which was expected to decrease to 0.1%. The Italian Monthly Unemployment Rate showed a slight decrease to 11.1% from the previous value of 11.3% which was expected to be at 11.2%. The CPI Flash Estimate report was published with an unchanged value at 1.3%, and the Core CPI Flash Estimate report showed a slight increase to 1.2% which was expected to be unchanged at 1.1%. Furthermore, the Italian Prelim CPI report showed a positive result at 0.1% from the previous negative value of -0.1% which was expected to be at 0.0%. Besides, the EU Unemployment Rate report showed a decrease to 9.1% which was expected to be unchanged at 9.2%. There had been good amount of positive economic reports on the EUR side today which put USD under pressure. Speaking about the US news, today the Chicago PMI report was published with worst figure at 58.9 from the previous value of 65.7 which was expected to be at 60.8. At the same time, the Pending Home Sales report showed a positive outcome with an increase to 1.5% from the previous value of -0.7% which was expected to be at 0.9%. The mixed economic reports are currently helping USD to gain over EUR but the momentum is expected to be temporary. The long-term trend is currently bullish due to the ECB hawkish statements and positive economic reports published recently.
Now let us look at the technical view. The price is currently residing above the support area of 1.1500 to 1.1620. As the impulsive phase is currently showing some exhaustion and volatility, a retracement towards the support area is expected in the coming days. If the price bounces off the support area with a daily close, we will be looking forward to buy with a target towards 1.2140 resistance level in the future. As the price remains above the support area of 1.1500-1.1620, the bullish bias is expected to continue further.
The material has been provided by InstaForex Company – www.instaforex.com