The EURUSD moves higher this early moaning and breaks out of the falling wedge pattern and above resistance 1.3582/1.3620, at the moment the pair is around 1.3640 levels.
Both data “German & French ” were above expectations. the French PMI was 48.8 while the German PMI was 56.3, too far beyond expectations “54.7”, this development is an early warning for further gains in the nearest future, especially if the pair manage to hold its gains above 1.3620 levels.
What would happen next ?!!!
Now focus will be on US news next, we have Initial Jobless Claims at 13:30 GMT & Existing Home Sales at 15:00 GMT :
How would US data affect EURUSD today?
First, let’s highlight support and resistance levels:
1.3507 , 1.3540 , 1.3582 , 1.3620 , 1.3650 , 1.3680 , 1.3710 , 1.3750
Initial Jobless Claims: Last week was 326 K, this week is expected to make small gains to 331 K, how US Initial Jobless Claims will affect the EURUSD today ?!!
1. A reading of expectations between 300 K and 330 K is likely to bring small decline to test support around 1.3620 before flying towards 1.3650/1.3680 levels.
2. A reading between 330 K and 350 K will send the EURO directly through 1.3650/1.3680 levels.
3- A reading above 350 K is likely to send the pair towards 1.3680/1.3710 levels.
4- A reading below 300 K ” unexpected ” is likely to bring deeper decline towards 1.3582 levels before the next rise…
In general, negative US data will resume the bullish move, positive US data would only delay the bullish move – may bring deeper decline – mixed US data will bring consolidations before the next rise.
Remember, I mean by US data, both Initial Jobless Claims & Existing Home Sales…
The smart question now is :
Did fall from 1.3892 over at 1.3507 levels ?!!!!