The EUR/USD pair has been trading higher since the 29th of January 2016, with the bulls leading the price from as low as 1.0810 to as high as 1.1081.
On Tuesday, the major attempted to test the area of 1.0935, but found enough resistance to force the pair to correct lower. Today, the pair initially consolidated to subsequently bounce all the way up to 1.1081, in response to soft U.S. releases. Specifically, the ISM non-manufacturing was at 53.5 last month compared to December’s 55.3 reading, disappointing expectations.
In the event that the buyers keep pushing higher and the price successfully breaks above 1.1081, the price could escalate up to 1.1134 and 1.1176 in extension.
On the flip side, in the scenario where the market founds enough resistance above the 1.1081 area, thus forcing it to correct below 1.0945, the pair could find support at 1.0890 and 1.0810.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.