- Staying close to the upper middle line signaled an imminent breakout.
- R2 represents a potential target.
- BPC and US data should have a big impact today.
EUR/USD is trading in the green at 1.0877 at the time of writing. The pair appears determined to extend its rally amid broader dollar weakness.
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Basically, the US ISM Services PMI fell from 53.4 points to 52.6 points, below the expected 53.0 points. Meanwhile, Factory Orders reported a 3.6% decline, more than the estimated 3.1% decline.
On the other hand, the German Final Services PMI and the Eurozone Final Services PMI were better than expected, while the Eurozone Consumer Price Index again recorded a 0.9% decline.
Today, Germany’s trade balance came in better than expected at 27.5 billion, above expectations for 21.0 billion, while retail sales rose 0.1 percent as expected. Later, US economic figures and the BPC should bring sharp developments.
ADP Employment change excluding agriculture could jump from 107,000 to 149,000, while JOLTS jobs could fall from 9.03 million to 8.80 million. Also, Fed Chairman Powell testifying is a high-impact event, so anything can happen.
Moreover, the BPC is expected to keep the overnight rate at 5.00%, but the BPC Press Conference should have a big impact.
Technical analysis of EUR/USD price: Bullish Momentum
From a technical point of view, the EUR/USD price remained close to the upper middle line (uml) indicating an imminent breakout and continuation. As you can see on the hourly chart, the price bounced and stabilized above this broken dynamic resistance, signaling further upside.
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The breakout has been confirmed and has now passed above the former high of 1.0865 and through the weekly R1 of 1.0870. This represented the obstacles upside down, so more winnings were on the cards. The psychological level of 1.09 and the weekly R2 of 1.0903 are seen as the next targets.
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