EURUSD keeps going slowly up. The rally started from 1.3873. Later on, the currency pair started consolidating within the 1.3864-1.3881 price range, which is a narrow one.
The volatility is relatively low. Still, the Euro is trying to get slightly more value against the US Dollar despite positive stats on the US economy.
The positive figures shown by the latest US macroeconomic stats doesn't seem to have impressed traders and investors. The US Service PMI came out strong (the best value in 8 months) but the Dollar failed to take this into account. The figures increased from 53,1 up to 55,2 in April. Analysts had anticipated an increase up to 54,1. Consequently, the index came put better than expected.
These figures indicate that the economic activity is recovering. Any value above the 50 level indicates positive tendencies in the sector. Instantly after the news, EURUSD started reacting t the news by a drop from 1.3884 down to 1.3873 but then the price recovered to the starting point, thereby reducing the bears' efforts to nothing.
EURUSD Prospects
This is what Masterforex-V Academy thinks on the matter:
The H1 chart of EURUSD indicates no major price changes. The chart shows several completed waves: a bullish one (1.3774-1.3888) and a bearish correction against it (1.3888-1.3811).
Then, the price started forming a 3rd momentum from Friday's low at 1.3811 ( the blue line). So, the price created a relatively narrow price range within the scope of 1.3864-1.3881. The top of the range was pinned at the beginning of the american session. The near-term prospects will depend on whether the price will be able to consolidate above the top of the range.
The levels of resistance are still the same: 1.3888 + the top of the range.
The levels of support: 1.3864, 1.3850, 1.3811, 1.3785, 1.3774.
