The EURUSD made indecisive movement yesterday, formed a Doji formation on daily chart. Even after some positive data from the Euro zone and a better than expected US Consumer Confidence which rose to 54.1 in August the Dollar still have some support at 1.4375 resistance area. However, growing optimism that the global economy crisis is ending should support the Euro and wane the demand for the Greenback. Today we will have US Core Durable Goods Order and New Home Sales data. The market is expecting a positive results to support it’s optimistic view so a disappointing numbers could be bad for the Euro as risk aversion may increase.
On h1 chart below we can see that the pair is consolidating, moving in rectangle area between 1.4250 â€“ 1.4375. The scenario should remains potential bullish but so far the Dollar seems to have good technical support at 1.4375 area. The bias remains neutral in nearest term. A break from the range area should give us a clearer direction. I am expecting a break above 1.4375 to continue bullish scenario towards 1.4719. However a break below 1.4250 should diminished the bullish view and could lead us back into 1.4170 or even 1.4050 area.