EUR/USD has been quite corrective in nature last week due to mixed economic reports of both the currencies of the pair. Draghi and Yellen have recently been quite confusing with their speeches which left the market sentiment with no chances to have a directional bias in this pair. Recently USD Average Earning Index report was published with a decreased value at 0.1% from the previous value of 0.3% which was expected to be at 0.2%, Non-Farm Employment Change also showed significant decrease to 156k from the previous figure of 189k which was expected to be at 180k, Unemployment Rate report was published with an increase to 4.4% which was expected to be unchanged at 4.3% and ISM Manufacturing PMI report was the only high impact economic event which turn out to be positive at 58.8 from the previous figure of 56.3 which was expected to have a slight increase to 56.5. Despite the series of worse economic reports, the pair has managed to gain some momentum on the bearish side upon the daily close which put the pair in more corrective and volatile structure. Today due to the observance of Labor Day USD is observing bank holiday for which the gain on the currency and market pressure is quite low in comparison yet EUR failed to gain momentum. Today EUR Spanish Unemployment Change report was published with worse figure at 46.4k from the previous figure of -26.9k which was expected to be at 16.3k, SENTIX Investor Confidence report was somehow published with a positive result at 28.2 from the previous figure of 27.7 which was expected to have slight decrease to 27.4 and PPI report was published with worse figure at 0.0% from the previous value of -0.2% which was expected to be positive at 0.1%. Due to a good amount of worse report on the both currencies of this pair, the market sentiment is quite confusing and corrective. As ECB has been quite positive with the upcoming economic decisions, gain on EUR against USD is expected in the coming days but as ECB is quite concerned about controlling the EUR gain, so there might a slow and steady gain on EUR in the future.
Now let us look at the technical view, the price has been quite non-volatile in nature with the bullish gains which converted to volatile and corrective in nature recently. The price has bounced off the 20 EMA and 1.1820-50 support level for a respectable number of times throughout the process for which further bullish pressure is expected in this pair as the price remains above these levels. As the price remains above the 20 EMA and 1.1820-50 support area with a daily close, it is expected that the price will head towards 1.2140 resistance level in the coming days and bullish bias is expected to continue further.
