Worst than expected Markit ISM Manufacturing numbers made the US Dollar dip this morning; this brought bulls to the EUR/USD right at a previous zone of demand.
The first short term short targets after the break of the ascending structure were hit at around 1.1130 at the 2.618 extensions. Not only that, this level confluence perfectly with the 76.4% of the last leg of the up move (1.1044 – 1.1366).
We saw significant volume around those levels and 1.1143 POC, not only were bear taking profit but bulls were jumping in. The struggle was real as price got stuck in a 40 pips range for a day.
This morning disappointing ISM manufacturing PMI numbers finally allowed bulls to break above this range and currently the EUR/USD is up 0.22% for the day before tomorrow ´s NFPs.
The logical cycle would be for a test of the 1.1250 level and the 50% of the leg down but because we have NFPs tomorrow it ´s hard to say iff these targets are going to get hit with only three sessions left (today ´s NY, tomorrow ´s APAC and London).
In any case, we are long from the breakout and will be closing manually if our immediate targets are not hit by pre tomorrow NFPs. The USDollar is still driving this currency pair and tomorrow ´s change in US non-farm payrolls will be decisive in the future ´s direction of the EUR/USD
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