EUR/USD is currently residing inside a corrective structure after the break above the resistance level of 1.1140. Recently due to mixed economic reports on the both currencies of the pair, the market is currently residing in a range of 1.1140 to 1.1280 area. Today we have EUR German Ifo Business Climate report to be published which is expected to have a slight increase to 114.7 from previous value of 114.6 and German Buba Monthly report to be published which is expected to inject some volatility in the market as it contains relevant articles, speeches, statistical tables and provides detailed analysis of current and future economic conditions from the bank’s viewpoint. On the USD side, today we have Core Durable Goods Orders report which is expected to show a rise to 0.4% from previous value of -0.5% and Durable Goods Orders report which is expected to show less deficit at -0.5% from the previous value of -0.8%. The USD reports are also expected bring in good volatility in the market today as the reports represent the activity of the manufacturing organization of the country. As of the current situation, a good amount of volatility is expected to hit the market today as both currencies have high impact economic events but EUR is expected to have an upper hand over USD in the coming days.
Now let us look at the technical view, the price is currently residing just above the support level of 1.1140 since last week and as the price remains above the level the price is expected to proceed further up with a target towards the resistance area of 1.1280-1.1360. As the pair has been in a non-volatile bullish trend after the French Election took place further upward move is expected until the price reaches the resistance area. The bullish bias is expected to continue further until price breaks below 1.1140 with a daily close.
The material has been provided by InstaForex Company – www.instaforex.com