EUR/USD Edges Higher, Trendline Resistance Broken

Frankfurt (Feb 28)  EUR/USD is marginally higher in today’s trading as the dollar is pulling back from Monday’s high. The pair is currently holding near 1.0598, a gain of 0.11% over Monday’s North American close.

As a result of today’s move to the upside, the pair has edged above the downward sloping trend line that has defined price action since the beginning of February. The break above this trendline is a constructive sign and clearing the 1.0600 level over the near term will likely elicit more buying.

On such a development, the next target becomes the February 16/17 corrective top at the 1.0679 level. Ahead of this top, the 20-day moving average could have resistance value, however. In today’s trading, this moving average stands at roughly 1.0640.

In today’s economic news, French CPI for January came in at 0.1% versus consensus estimate for a reading at 0.4%, following a reading at -0.2% in December. French GDP was also reported, coming in as expected at 0.4%, as was French Consumer Spending, which was reported at 0.6%, in line with expectations.

In the US today, Q4 GDP, second estimate, will be released at 08:30 ET. This will be followed by Chicago PMI at 09:45 ET and Consumer Confidence at 10:00 ET.

At present, with EUR/USD moving higher and the advance confirmed by a rising Stochastic, a price momentum indicator, the bias is to the upside in today’s trading.

However, should sellers step in, support is at the low established in last week’s trading at 1.0494. A drop below this level would leave the target at the January 11 low at 1.0454.

Source: EconomicCalenedar