The Euro (EUR) extended upside movement against the US Dollar (USD) on Monday, increasing the price of EURUSD to more than 1.0950 ahead of some key economic events. The technical bias remains bullish due to a Higher High in the recent upside rally.
As of this writing, the pair is being traded near 1.0959. A hurdle can be seen around 1.1000, the confluence of psychological number as well as 50% fib level ahead of 1.1102, the 38.2% fib level as demonstrated in the following daily chart.
On the downside, the pair is likely to find a support around 1.0877, the 61.8% fib level ahead of 1.0818, the low of the last major dip and then 1.0800, the psychological number. The technical bias will remain bullish as long as the 1.0818 support area is intact.
The Institute of Supply Management (ISM) is due to release the US manufacturing report today during the early New York session. According to the median projection of different economists the ISM Manufacturing PMI index remained 52.0 points in May as compared to 51.5 points in the month before. Generally speaking, higher ISM manufacturing report is seen as bullish for the US Dollar and vice versa.
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term because of the bullish pin bar that emerged last week, indicating considerable strength in the price action. The trade should however be stopped out on a daily closing below the bullish pin bar candle as described above.
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