Euro Toughens On Weak U.S. Dollar Ahead Of Local Data
FxGrow | May 23, 2017 01:36AM ET
Euro Toughens On Weak U.S. Dollar Ahead of Local Data
EUR/USD sustained the bullish momentum for 30 consecutive days, trading with +100-pips above its daily 7-EMA, and clocked a 1.1263 high yesterday, a peek the pair has not witnessed since Oct-2016. On the other hand, weakness in U.S. dollar as the Index plunged today to 96.68 low indicates the sharp tone of euro facing its west rival greenback and EUR/USD still has potential to revenge with higher gains ahead of EU local data today.
Previous EU Data including PMI, CPI, and Retail sales were increasing session over session, but the main focus today will be on German Data, along with the increasing inflation, and Merkel's crossing wires recently indicating that the positive data, hand in hand with inflation between 1.9% and 2% on the last quarter, should pressure ECB moves next meetings.
Summary: With continuous weakness symptoms showing in U.S Index due to U.S political internal tension, along with Merkel's recent comments, expectations for EUR/USD to surge higher, but EU's data today will either boost the pair higher or could corrupt the pair's bullish momentum. We look forward for the data for more intakes on EUR/USD how long will it survive living in high castles.
Fundamentals:
1- EUR - German Final GDP q/q today at 6:00 AM GMT.
2- EUR - French flash Services and Manufacturing PMI today at 7:00 AM GMT.
3- EUR -German flash Services and Manufacturing today at 7:30 AM GMT.
4- EUR - German Ifo Business Climate today at 8:00 AM GMT.
5- EUR- EU Flash Services and Manufacturing PMI today at 8:00 AM GMT.
6-- EUR - Draghi Head of ECB speech tomorrow at 12:45 PM GMT.
Technical Overview:
Trend: Bullish / Sideways
Resistance levels: R1 1.1272, R2 1.1366, R3 1.1357 (D1)
Support levels: S1 1.1208, S2 1.1162, S3 1.1074
Comment: the market is bullish and Friday's along with Yesterday's strong bull day calls for a stretch to 1.1300. Any corrective dips that hold inside Friday's range will keep bull forces intact. A close under 11086* is needed for a peaking turn into a correction phase down to 1.1010. EU data today is vital for EUR/USD trading trend the coming hours along with U.S Index in correlation with internal affairs.
MACD indicates Bullish Momentum D1
RSI indicates Bullish Momentum but Overbought Market.
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