Technical Bias: Slightly Bullish

The Euro (EUR) extended upside movement against the US Dollar (USD) on Monday, increasing the price of EURUSD to more than 1.0800 ahead of some key economic events, holding off a major trendline on the hourly timeframe. The technical bias remains slightly bullish due to higher low on lower timeframes.

Technical Analysis

As of this writing, EURUSD is being traded around 1.0813. A support can be seen near 1.0819, the 38.2 fib level ahead of 1.0775, the trendline support area as demonstrated in the following hourly chart. A break and daily closing below the trendline support area could incite renewed selling pressure, validating a dip towards the 1.0500 handle.

On the upside, the pair is expected to face a hurdle near 1.0900, the 23.6% fib level ahead of 1.1000, the psychological number and then 1.1039, the swing high of the bearish pin bar which emerged last week. The technical bias will remain bullish as long as the 1.0600 support area is intact.

Eurozone Consumer Confidence

The consumer confidence news from the Eurozone is due today. According to the average forecast of different analysts, the consumer confidence remained -5.95 in March as compared to -6.70 in the month before. Generally speaking, higher consumer confidence reading is considered positive for the economy thus a better than expected actual outcome will be seen as bullish for EURUSD and vice versa.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair near the trendline support area appears to be a good strategy in short to medium term. The trade should however be stopped out on an hourly closing below the trendline channel as described above.

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