EUR/USD yesterday closed with a bullish pin bar like daily candle however pair has not completed downside wave as of yet and is eyeing on bunch of economic reports that are scheduled for today.
At the moment of writing at 4:31 GMT in Asia the pair is being traded around 1.3651 with immediate resistance seen around 1.3664 which is 38% fib level now acting as resistance. A break above shall target 1.3750, 23.6% fib level.
On downside first support is seen around 1.3616 which is 100 Daily Moving Average (DMA) ahead of 1.3592 that is 50% fib retracement. A break below may threaten 1.3522 that is 61.8% fib level and only notable support before swing low of previous wave.
It is pertinent that EUR/USD printed a Higher High (HH) in previous wave which has turned our bias into bullish about the pair. Now a Higher Low (HL) will be a confirmation of bullish bias failing to which may open doors for 1.3300 zone.
An important report about Germany’s unemployment rate in January is due later in Asian session. According to median projection of different analysts no change in unemployment rate is likely this time around. Then in London evening session another important report about Germany’s consumer price index is scheduled for release. Analysts have predicted slight improvement in inflation figure for January.
And finally in the US session we have the most important fundamental event due about the US economy which is quarterly data about growth and inflation in fourth quarter. The US economy grew at slower pace in fourth quarter according to average gauge of various analysts. Similarly inflation report is also likely to post poor reading this time around according to experts. Previously Fed announced reduction in QE by $10 billion on Wednesday as FOMC two-day meeting concluded on overall hawkish note.