After failing to show decent volatility on Monday and Tuesday, the common European currency set a local low at 1.3677. The currency pair has been trading within the 1.3688-1.3731 price range since the beginning of this trading week.
Today's European trading session showed us a little rally of EURUSD. The growth started from 1.3699 and continued up until 1.3717 at the beginning of today's European trading session. So, the start was bullish for the common currency.
Yesterday, several Fed officials made their speeches during the conference in Dallas. However, EURUSD ignored their statements and stayed within the mentioned price range.
Meanwhile, the eurozone has just released some more economic figures. This was the eurozone's balance of payments. This is the major news release for the common currency for today. The figures used to be growing since December 2013. Still, in April, the balance of payments declined down to 21,9bn euros after 25,3bn for the previous reporting period.
Experts had expected the figures to reach 23bn, but the report failed to come up to their expectations, thereby showing 18,8bn. This is the lowest level since early 2014. This is why the rally wasn't considerable and stopped after the release, Market Leader reports.
EURUSD. Technicals
According to the comprehensive analyssi conducted by MAsterforex-V Academy, the H1 chart of EURUSD indicates no major price moves since yesterday. The currency pair is still trading within the scope of the 1.3688-1.3731 price range.
After the price broke below the bottom of range, the bears failed to hold the ground, thereby letting the price go back inside the range. So there is no clear bias that this point, the situation is ambiguous and will clarify after the price comes out of the range and consolidates outside of it while backed by fundamentals, Masterforex-V Academy reports. They say the reversed «head and shoulders» pattern still holds true. Still, this pattern doesn't automatically mean a forthcoming reversal. The pattern needs confirmation to actually manifest the scenario.
So, traders should watch the price reaction to the following levels:
Resistance: 1.3731 (33) + 1.3772(74) + 38.2% + 1.3811 + 1.3842.
Support : 1.3688 + 1.3677 + 1.3679 + 1.3648.
