© O Financista. EUR/USD tries to move forward after a test of 1.13
The pair EUR/USD is gaining ground on this Friday afternoon, with a recent summit on 1.1343, the highest since more than 10 days.
Note that the Euro Dollar has shown to be hesitant in the first part of the day, exploring the lower with a lower daily at 1.13, a threshold that has served as support for the rebound that is currently displayed on Friday.
Although the economic calendar US this afternoon has been charged, it is difficult to connect the publications to the changes of the EUR/USD, which reacts to the opposite of what one would expect.
The Euro-Dollar has lost ground against the first two statistics US of the day, the index Empire State and industrial production, while the figures in the consensus that have been released for the two indicators could support the EUR/USD weighing on the Dollar.
The manufacturing index for the Fed of New-York, (index, Empire State) has posted a sharp drop in surprise to 3.70 points after 8.8 points in the previous month, the lowest since may of 2017, while economists had been pencilling in a rise to 10 points.
The industrial production for the month of February was also the occasion of a surprise in the negative, with an increase of +0.1% against +0.4% expected.
But what is doubly curieu in the behavior of the EUR/USD pair, is that the acceleration upward after the trough daily is achieved despite the solid numbers of the other two statistics US the second part of the afternoon : The report JOLTS on the jobs US January (7.581 M 7.310 M advance), and the index of consumer confidence US University of Michigan, march (97.8 points against 95.3 points anticipated).
To sum up, the EUR/USD has fallen in the face of bad news out of the US which should have been logically support the pair, only to rebound in the face of figures US better than expected, which would have weighed on trade.
The profit-taking and adjustments of the positions of the end of the week may be to incriminate to explain this strange behavior of the Euro, and caution is therefore required.
From a graphical point of view, it will be necessary for EUR/USD manages to confirm a break above 1.1340 to renew the upward bias, and eventually hope to aim for the next resistance at 1.1350, 1.14 and 1.1420.
Has the downside, a break below 1.13 would drag the probabilities more on the side of lower, with in this case of the media being monitored on 1.1250, 1.1220, 1.12 and 1.1175.