EUR/USD: When nothing happens, the pair moves up

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EUR/USD is trading at 1.1637, up some 50 pips from the lows of the day at 1.1585 and some 80 pips from the lows of 1.1555 seen earlier in the week.

There is no sole driver that pushes the pair to the upside, but data has been positive. The European Commission upgraded economic forecasts for the euro-zone, from 2.1% to 2.2%. ECB member Benoit Coeure said that the 19-currency bloc is seeing robust growth.

In addition, Germany’s trade balance came out at a wider surplus than expected: 21.8 billion, even though both imports and exports slipped.

This trading week does not feature huge economic indicators as we’ve seen beforehand, and this is when the euro rises. The aforementioned trade balance surplus of Germany and the euro-zone as a whole means that more money flows into the area than leaves it. Of course, with economic indicators, monetary policy, statements and political events, speculation has the upper. However, when (almost) nothing happens, the euro is naturally bid.

Further resistance awaits at the 2016 peak of 1.1620. This is followed by the 1.1670 level, and then 1.1710. Support now awaits at 1.1555.

More: EUR/USD: can it move up from here? Two opinions

Here are the recent moves on the EUR/USD hourly chart:

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

2 Comments

  1. Jose Quintanilla on

    Interesting Analysis the price could dip to 1.1635 before reaching a new high. Since this Friday is relatively devoid of news releases, I’m expecting trading on the euro/dollar pair to close around the trend line at 1.1620.