Eur / Usd - the pair remains firm in the region of two-month highs

Yesterday, the single European currency was in a positive position amid a significant weakening of US dollar. The growth of the EUR / USD was triggered by the weaker US dollar, while at the same time, the positive market sentiment and appetite for risk continue to support European currency. Nervousness of the market participants at the beginning of the last session caused by Yellen presentation, who once again expressed concern about the low level of inflation. Statistics, which later came out in the US, also did not support the demand for the US dollar, as a result, investors moved out of US currency before the big weekend in the US. Such sentiments persisted until the end of the day, as the FOMC protocols did not meet the expectations of the market as well.

The political crisis in Germany has not yet been resolved and it is not known yet when this will happen, if re-elections are scheduled, the process may drag on for months. The ECB also remains cautious, and in the near future it does not intend to begin to tighten monetary policy, amid low inflation. Therefore, the situation remains complicated and with such uncertainty, we are more likely to move smoothly into 2018.

As for today, the trading will be influenced by data and news from the EU. The statistical block for Germany has been published, which turned out to be mixed. The index of business activity in the manufacturing sector rose to 62.5 (forecast 60.4, the previous 60.6), but the same indicator of the service sector was below the forecast of 54.9 (forecast 55.0, previous indicator 54.7). The reaction of the market was restrained, but it is probably due to the expectations of still statistics on the EU as a whole and the publication of the minutes of the ECB meeting on monetary policy.

The technical picture has not undergone a major change in the last 24 hours. The European currency continues to feel stable, trading near the two-month high. There is a very strong resistance zone ahead of Eur/Usd in the area 1.1850-1.1890. Looks like this level is hard to cross at once, although the older time frames show that the euro's growth will continue and the immediate goal of the current upward momentum is the area of ​​1.2075-1.2080. Besides downward signals are not yet observed on the market, but now the price is in front of strong resistance and in such a situation, it is more logical to expect a technical pullback and consolidation in the zone 1.1790-1.1800.

Recommendations: careful longs in the zone 1.1790-1.1800.

Fort Financial Services