Yesterday US dollar found for the ground under its feet

Yesterday US dollar found for the ground under its feet and after a long decline and was able to finish the trading day in positive territory. The convincing statistics from the USA, and most importantly, the minutes of December FOMC meeting, triggered the growth of consumer activity on the US currency. Today the day is also full of important news events. Markit PMI and the index of business activity in EU service sector have been published. Both indicators were better than the experts' forecast, 58.1 (forecast 58.0) and 56.6 (forecast 56.5), respectively.

Later, we are expected by a large statistical block from the US -the data from ADP on the change in the number of employed in the non-agricultural sector. As for the technical picture, we can note the fact that previous session made small adjustments to the alignment of forces in the market. Today, Eur / Usd pair fully recovered from yesterday's losses and returns to local highs - level 1.2070. There is is a significant resistance zone - 1.2070-1.2090 ahead of the pair.

The initiative has now returned to the euro bulls. Indicators support these undertakings as well. However, a strong level of resistance is alarming, so we recommend to be cautious and wait for the development of events as the market to consolidate above an important level of resistance.

Our recommendations - out of the market

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