EUR/USD has been in a corrective structure since the break above the 1.1140 level. EUR showed a good amount of bullish pressure with Positive Italian Trade Balance report at 3.60B which was expected to be at 3.41B and after the worst US Building Permits and Housing Starts reports on Friday. The Building Permits were expected to increase to 1.25M from 1.23M but the actual result showed a decrease to 1.17M and Housing Starts were also expected to rise to 1.23M from 1.16M but it was published with a worse figure at 1.09M. Today, the market is quite corrective in nature because the economic calendar lacks important reports both for USD and EUR. Today, FOMC Member Dudley and German Buba President Weidmann are due to speak later today on the key interest rates and further monetary policies. Recently, US Fed raised the funds rate which curbed the growth of EUR against the USD. However, until the corrective situation in the market remains, there are no future gainers, neither EUR nor USD. Nevertheless, EUR is expected to have an upper hand over USD this week.
Now let us look at the technical chart. The price is currently above the support level of 1.1140. On Friday, we observed that the market has already shown a bounce off the level with bullish pressure. As the price remains above the 1.1140, a further bullish move in this pair is expected with a target towards 1.1280-1.1360 resistance area. The bullish bias is expected to continue further until price breaks below 1.1140 with a daily close.
The material has been provided by InstaForex Company – www.instaforex.com