Recently EUR/USD has broken above the corrective structure resistance area of 1.1280-1.1360. As of the first week of the month, the pair started slow and currently showing some bearish pressure after the impulsive bullish breakout. Recently EUR has been quite stronger than USD due to positive economic reports and the hawkish statement from ECB President Mario Draghi and as of the current situation, a further continuation of gain is expected in this pair in the coming days. Today EUR Spanish Manufacturing PMI report was published with a worse figure at 54.7 from the previous figure of 55.4 which was expected to increase to 55.6, Italian Manufacturing PMI showed a slight improvement to 55.2 from previous value of 55.1 which was expected to increase to 55.3, French Final Manufacturing PMI showed a decrease to 54.8 which was expected to be unchanged at 55.0, German Final Manufacturing PMI showed an increase to 59.6 which was expected to be unchanged at 59.3, EUR Final Manufacturing PMI showed a slight increase to 57.4 which was expected to be unchanged at 57.3 and Italian Monthly Unemployment Rate is increased to 11.3% from previous value of 11.2% which expected to decrease to 11.1%. Along with these economic reports, EUR Unemployment Rate report which was published today was unchanged at 9.3%. Overall EUR had a series of negative reports today with a few slight improved figures in the reports which did not help the currency to gain much strength in the market today. On the USD side, today ISM Manufacturing PMI report is going to be published which is expected to increase to 55.0 from previous value of 54.9, Construction Spending is expected to show an increase to 0.3% from -1.4%, ISM Manufacturing Prices is expected to decrease to 58.5 from previous value of 60.5 and Total Vehicle Sales in the USA is expected to fall to 16.5M from previous value of 16.7M today. As a respectable number of economic events on USD is going to be published, volatility is expected to hit the market today. Any negative report on USD today will help EUR to gain more against USD in the coming days which is more probable. To sum up, EUR has the upper hand over USD and expected to dominate further in the coming days.
Now let us look at the technical view after the price has broken above the resistance area of 1.1280-1.1360, currently, it is expected that the price will move down to the same area to retest it as a support area before proceeding further up towards 1.1610 resistance area in the future. As the price remains above the area of 1.1280-1.1360 further bullish pressure is expected in this pair and bullish bias is to continue in the coming days.
