On the opening bell on Monday morning, the EUR/USD had opened up at 1.1305 levels and was hardly 5-10 pips down. The euro pair maintained the top mark of 1300 levels after hitting the last day’s strong 1.1314 resistance level. The pair was able to capture some good gains in the previous week, even though the ECB President reiterated his dovish stance on the overall economic outlook.
One of the most prominent rationales behind euro gains always remained the plunge in the greenback. Slight pain in the US Dollar Index pushes its strongest rival currency upwards. At 05:50 GMT, the USD index had bounced off the lowest vicinity near 96.83 levels which acted as a healthy resistance level on April 12.
Investors must have a close eye on the headlines regarding the US-China trade agreement and the EU-US trade uncertainties.
On the US side, some low volatile events are coming up. Federal Reserve Bank of New York will release the NY April Empire State Manufacturing Index at around 12:30 GMT. The street analysts are highly bullish on the index. The street is expecting a 62.1 percent jump in the index for this month.
However, The Euro pair remained muted near the 1.1300 levels in the early hours as there is less/no EUR/USD significant events lined up on the release front.
The EUR/USD finds tremendous support near 78.6% Fibonacci Retracement line. The pair rebounded twice from this level at 1.1239 levels. The next upper 61.8% Fibonacci Retracement line resembled as the strong barrier for the pair. The EUR/USD attempted multiple times to reach this level of 1.1285 but failed to accomplish. The pair has found last resistance near 50% Fibo Retracement line near 1.1315 levels. The pair seems to be remaining steady at these levels. Another fundamental rationale for keeping up a bullish stance on the future movements of the pair is the strong position of the Simple Moving Averages (SMA).
The pair traded above the SMA computed for the most significant 100-days and 200-days developing higher prospects on the EUR/USD. During the Asian trading session, the pair recently shifted its route from the lower band region of the Bollinger Bands (BB), driving into the upper vicinity of the BB. All these indicators signal for a sustained uptrend to occur in the pair’s movements in the coming trading sessions.
This article was originally posted on FX Empire