The Euro (EUR) extended its winning streak against the US Dollar (USD) on Friday, increasing the price of EUR/USD to more than 1.0550 following some key economic news release. The technical bias remains bearish because of a lower high in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded around 1.0558. A hurdle can be noted near 1.0670, the trendline resistance area ahead of 1.0819, the 50% fib level and then 1.0937, the upper trendline resistance as marked with red color in the above chart. The technical bias shall remain bearish as long as the 1.0819 resistance zone is intact.

On the downside, a support may be seen near 1.0514, the trendline support area as demonstrated in the given above daily chart with brown color. A break and daily closing below the 1.0514 trendline support shall incite renewed selling interest, validating a move towards the 1.0400 support zone which is a psychological number.

US Services PMI

Service sector activity in the U.S. unexpectedly strengthened in February, registering an 85th consecutive month of growth and bolstering optimism over the U.S. economy, industry data showed on Friday. In a report, the Institute of Supply Management (ISM) said its non-manufacturing purchasing manager’s index (PMI) unexpectedly rose to 57.6 in February from the prior month’s reading of 56.5. Analysts had expected no change from January’s reading. On the index, a reading above 50.0 indicates the non-manufacturing sector economy is generally expanding, below 50.0 indicates the sector is contracting.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair above the trendline resistance area appears to be a good strategy.