The Euro pair was trading in a range bound manner during the Asian trading session. The pair remained fluctuated between 1.2220 and 1.2229 levels. After plunging until the last day’s mid-session, the EUR/USD found support near 1.1206 levels at 13:24 GMT. The pair reversed to uptrend gradually. This upward movement got extended into the Friday’s trading session.
The pair awaits a couple of industrial reports and significant US related events during the day. The Street Analysts are highly bullish over the German February Industrial Production. The pair is anticipated to show similar expected results which will drive the pair upwards.
The quick pickup in the US Dollar Index was the primary rationale behind the previous day’s slump in the pair. Today, the index was showing some bearish signals as if some force is pulling it down. A USD Index plunge can act as a catalyst for the EUR/USD today.
However, Brexit drama woes the pair. The status quo of the Brexit says that there is a higher possibility of a further extension to the Brexit date provided earlier. This chaos may impact the Eurozone elections about to commence from May 23.
Moments ago, German February Industrial Production (both MoM and YoY) came out. The Industrial numbers reported higher than the market expectation thereby took the EUR/USD to the north reaching 1.1233 levels.
Key EUR/USD Influencing Events Scheduled For The Day:
12.30 GMT (Highly Volatile)
The US Department of Labor will broadcast the March NonFarm Payrolls. These statistics will analyze the data on the new jobs created in Nonfarm sector. The monthly change in the Payroll is associated with the Central Bank’s policy decisions, and this feature makes it more unstable. The market analysts expect the Payroll numbers to come around 180K to the prior 20K. The EUR/USD pair may face a considerable downside if the NonFarm payrolls come out more than expectation.
12.30 GMT (Highly Volatile)
The US Department of Labor will publish the March Average Hourly Earnings (both YoY and MoM). The consensus estimates an in-line expectation on the YoY Earnings of 3.4 percent. The Market analysts take on a Bearish stance over the MoM Earnings, 0.3 percent down.
Technical Analysis
The EUR/USD was trading above the Ichimoku Clouds, baseline and condense line. These combined signals reveal a bullish stance. The RSI (Relative Strength Index) in the same period was moving up to 70 points. On the flipside, if the pair starts plunging hereafter, the cloud below the pair may act as a support line. The pair showed some signs of overbuying near 06:03 GMT in the RSI graph. In a nutshell, the bulls seem to revolve around the euro pair in its future movements.