The currency pair continues to move sideways on the short term, but we could see a major move in the coming days because I don’t believe that this range will last too long. Price has posted little gains today and has resumed the yesterday’s minor bullish candle, he could still drop in the coming days before will really start a larger bullish movement.
Looks like that we have a consolidation right now, but we still need a confirmation that the rate will start a broader rebound, the Euro has increased today as the Euro-zone data have come in better in the European trading session.
The EUro-zone flash Manufacturing PMI surged from 55.4 to 56.2 points in March, beating the 55.3 estimate, while the Flash Services PMI rose to 56.5 points, from 55.4 points, even if the traders have expected to see a drop to 55.4 points, the European currency has increased as the expansion continues in the manufacturing and services sectors. Moreover the German Flash Services PMI increased from 54.4 to 55.6, beating the 54.5 forecast, the indicator has reached the November 2015 high and has boosted the Euro, while the German Flash Manufacturing PMI has increased unexpectedly higher, was reported at 58.3 points, much higher versus the 56.6 estimate and versus the 56.8 in the reading period.
The French economic data have come better as well, the Flash Services PMI surged from 56.4 to 58.5 points, even if the economists have expected to see a drop to 56.2 points, the manufacturing sector has resumed the expansion as the Flash manufacturing PMI surged from 52.2 to 53.4 points.
The rate looks undecided on the short term, is consolidating after the impressive drop from last week, could drop even deeper in the coming days to retest the lower median line (lml) of the ascending pitchfork before will start a broader leg higher.
The pair could increase again because the behavior has changed on the short term when has started to make higher lows, has found major support at the lower median line (LML) of the major descending pitchfork and now could increase inside the minor ascending pitchfork’s body.