The pair EUR/USD continues its consolidation above the trend line that plays its role of support.
In fact, after the break of the trend line, and the recording of a peak to 1.1825, EUR/USD fell to test the oblique as a support.
Since yesterday, we are moving in a narrow range between 1.1750 and 1.1775, putting the pressure on the trend line.
This morning, we retreated to 1.1738 to try to break the oblique, but the latter still holds.
Subsequently, the good PMI in Germany helped the Euro to climb back above 1.1750.
Indeed, the manufacturing PMI of Germany spring to 59.4 vs. 57.7 expected and 58.1 previously. The service PMI rises to 53.4 from 53.1 vs. 53.3 expected.
On Forex, EUR/USD found support through these figures. The break upward of the trend line therefore remains intact at this stage, and the decline from 1.1825 is still in a pullback for the moment.
A rebound and a return of the increase therefore remains still valid, but a break above the first resistance at 1.1775 remains desirable to anticipate a movement in the direction of 1.1800, 1.1825, and then 1.1850, while a break above this last may favor a return to the recent peaks at 1.1890 and then 1.1909.
Above, we have then as target the area of 1.20.
In the opposite direction, a break below 1.1750 and then under the trend line towards 1.1740, could reignite the downward pressure, with brackets following to 1.1720, 1.1700, and 1.1680.
Below 1.1680, the bearish correction from 1.1909 could be revived, with thresholds to be monitored at 1.1662, 1.1650, and a target zone of the short-term to 1.1620/00.
As we see, potentially, the beginning of a recovery bullish with the break of the trend line, we still have to get out of the range 1.1680/1.1850 to have a direction a little clearer in the short term.
On the economic calendar, we will follow the PMI in the euro zone, a speech by Draghi in Germany (the speech, expected at Jackson Hole will take place on Friday evening), the PMI US consumer confidence in the euro zone, and new home sales US.
While some of these publications can bring in volatility in intraday, traders expect especially the speeches of central bankers in Jackson Hole at the end of the week to be more involved on the Forex.
The pair EUR/USD is currently trading at 1.1771 on the Forex.
Chart EUR/USD H1
See also our charts EUR/USD in real time.
This chart has been realized with the trading platform TradingStation 2 provided by FXCM France.