EUR/USD has been quite volatile and corrective recently but still been able to hold on the gains and long-term non-volatile bullish trend. There has been no directional bias on the pair right now but the bulls are having an advantage today due to positive eurozone’s economic reports. Today, Italian Trade Balance report was published with an increase to 6.56B from the previous figure of 4.50B which was expected to decrease to 3.89B, Final CPI was published unchanged as expected at 1.5%, Final Core CPI was also published unchanged as expected at 1.2%, and German Buba Monthly report was also hawkish in nature showing positive changes in the coming days. On the other hand, today US NAHB Housing Market Index report was published with a worse figure at 64 which was expected to be unchanged at 67. To sum up, in light of upbeat reports from the eurozone EUR sustained the gains which signals that a further bullish price action is on the way. As for the USD, a substantial number of high impact reports are going to be published this week including the FOMC Statement which is expected to create a good amount of volatility in the market this week. The weekly close of this week will surely provide a directional bias of the upcoming long-term view of the pair where EUR is expected to have an upper hand over USD.
Now let us look at the technical chart. The price is currently residing above the support level of 1.1900 and the dynamic level of 20 EMA as well. The non-volatile bullish trend is still very intact as the dynamic level and the nearest support level has not been violated by now. As long as the price remains above the 1.1900 with a daily close, the bullish bias is expected to continue further with a target towards 1.2070-1.2140 resistance area.
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