On Friday, the European currency regained all positions lost earlier and strengthened by 63 points versus the U.S.dollar. The Asian trading session rolled on rather uncertain, not the same as the European and American deals. With the playgrounds opening in Europe the EUR/USD overcame the resistance level at 1.4180 and reached 1.4235, fixing a new local minimum at 1.4255. Afterwards, a slight lowering to the 42 big figure bottom, the growth was stretched to 1.4235. The trading day and week closed at 1.4204.
The single currency rally was mostly due to the fundamental statistics from the USA and Eurozone released on Friday. In morning was issued the Purchasing Manager Index of Germany, which was first to stimulate the demand on the Euro, as the reading of 45.20 came in better than the experts forecasts, who were looking for rally just to 42.10. To remind you, the PMI index measures the purchase activity level in the manufacturing sector, which includes more than 50 indicators. The last reading amounted to 40.90.
A good increase was witnessed in the Germany business confidence index, which rose significantly to 87.30, compared to the previous period. The economists were predicting an upturn to 86.60. This indicator has been demonstrating a steady growth for 5 sequent months, that appears to be a good sign of the Eurozone economy recover.
All this findings provoked the European currency purchase among major players.
The Michigan sentiment index also affirmed confident investor\'s mood regarding the further global economy revival. This index showed an advancement to 66.00, compared to the preceding period reading of 64.60. The previous period showed lowering for the first time since March 2009, but, as we can see, the trend is still up-going.
Speaking about the technical pattern, worth noticing the long-term rising perspectives. The bottom level of price channel from July 08 stood around 1.4130, allowing the pair tick up to its upper bound and test it. The pair\'s closing slightly higher than the 42 big figure signals about possible Euro growth continuation against the U.S.currency.
At 1-hour graph the Bollinger bands demonstrate a high volatility rate, with the resistance around 1.4200, 1.4147.
Best regards,
Analyst: M.A.Magdalinin
