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 mange 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 US data would 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 a small gains to 331 K , how US Initial Jobless Claims will affect the EURUSD today ?!!
1. A reading within 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 :