EUR/USD has shown impulsive bullish move breaking above 1.1850 with a daily close recently. As of the recent bad economic reports of USD, EUR has gained quite a good momentum as well which helped the currency to climb much higher after a certain corrective volatile structure in place. Recently USD Core Durable Goods orders report was published with an increase at 0.5% from the previous value of 0.1% which was expected to be at 0.4% and Durable Goods Orders showed worse figure at -6.8% from the positive previous value of 6.4% which was expected to be at -6.0%. FED Chair Yellen also could not provide any more clues to signal hawkish sentiment of the economic decision which also leads to further weakness of the USD. In the weekend, Draghi had his speech where he explained how happy he is with the current economic condition of EUR and they are on the way to achieve the inflation target soon which leads to a GAP in the market in today's opening and powered the bullish bias of the market in this pair. Today EUR M3 Money Supply report was published with a decreased figure at 4.5% from the previous value of 5.0% which was expected to be at 4.9% and Private Loans report was published unchanged at 2.6% which was expected to increase to 2.7%. On the USD side, today Goods Trade Balance report is going to be published which is expected to show a greater deficit at -64.5B from the previous figure of -64.0B and Prelim Wholesale Inventories report is expected to decrease to 0.3% from the previous value of 0.7%. To sum up, USD is expected to gain some grounds of EUR for a shorter term but overall EUR is expected to gain more in the coming days as of the current market sentiment and economic structure of the economies.
Now let us look at the technical view, the price is currently residing above the support area of 1.1820-50. Currently, the price is expected to retrace towards the support area before pushing up much higher towards the recent resistance of 1.2140. As the price remains above the support area and dynamic level of 20 EMA the bullish bias is expected to continue further.
