Price has increased a little today and is trying to resume the short term throwback, but remains to see what will happen because is trading right below an important resistance area. The EUR/USD is struggling to increase as the USDX continues to stay below the 100.00 psychological level, the index has failed to close above the 99.84 and now is going down again.
The EUR/USD will be driven by the fundamental factors in the upcoming hours, so you should be careful because we don’t know the direction, the Euro-zone is to release some important data, which will bring life on this pair. The USD needs a helping hand from the United States economy, could increase if the data will be much better today.
The Euro-zone Current Account could increase from 24.1B to 26.3B in February, while the Flash Services PMI could remain steady at 56.0 points. Moreover the Flash Manufacturing PMI could drop to 56.1 in April, from 56.2, signalling that the expansion is slowing down a little. The German Flash Manufacturing PMI could decrease as well, from 58.3 to 58.1 points, while the German Flash Services PMI may drop from 55.6 to 55.5 points.
The Euro has received a helping hand from the French figures, the Flash Services PMI jumped from 57.5 to 57.7 points, beating the 57.2 estimate, while the Flash Manufacturing PMI surged from 53.3 to 55.1 points, exceeding the 53.2 forecast, the manufacturing and services sectors have continued the expansion.
You can see that continues to move somehow sideways, the current rebound is natural after the failure to stabilize inside the descending pitchfork’s body again, now is attracted by the first warning line (WL1). Has touched the Wl1 in the yesterday’s trading session, but has failed to stay higher, we’ll have a larger rebound if the price will jump and will stabilize above the warning line (WL1).
However another rejection from the WL1 will send the price down again, we could have a great selling opportunity if the rate will test the confluence area formed by the 150% Fibonacci line (ascending dottted line) with the WL1.