Despite of today small raise, the EURUSD is lower for the week. The pair is into the third week of the rally after leaving the resistance level of 1.35 behind.
The Euro community is looking stronger in today’s economics reports:
- Germany unemployment lower at 5.2%, slightly higher than expected but lower than the previous announcement.
- Spain inflation fall while GDP growth improved.
- Greece consumer and business confidence improving, but still far from glamorous.
Meanwhile is U.S
- Inflation rate were up for the month but still lower than the previous year.
With both economies performing quite well as today’s data suggest; it will be unlikely to see big movement in the EURUSD pair.
The Euro is in a better position to advance. While the US Dollar has technical indicators pointing to more bearishness, the EURUSD is in expansion mode and forming a stronger uptrend.
A bit of selling might occur at this point as the pair reached a previous profit target, but only in the short term (till the end of the week) before some good news push the pair higher, hopefully by next week.
Technically the EURUSD has room to grow till the next resistance. There is a gap from where is currently trading $1.37+ and the next resistance between $1.39 – $1.40. This gap should be covered before retesting any support around $1.35.