• The Fed left interest rates unchanged as
  expected at the last meeting and dropped the tightening bias in the statement.
• The US PCE came
  in line with expectations.
• The US ADP and
  the US Job Openings missed
  expectations.
• The latest US ISM
  Manufacturing PMI missed expectations by a big margin
  remaining in contraction with the US ISM Services
  PMI
  following suit but holding on in expansion.
• The US Consumer
  Confidence missed expectations across the board.
• The market expects the first rate cut in June.

EUR

• The ECB left interest rates unchanged as
  expected at the last meeting maintaining the usual data dependent language.
• The Eurozone CPI beat
  expectations.
• The labour market remains historically
  tight with the unemployment rate hovering at record lows.
• The latest Eurozone PMIs beat
  expectations on the Services side with the measure jumping back into expansion
  while the Manufacturing one missed dragged lower by Germany’s performance.
• The market expects the ECB to cut rates in June.

EURUSD Technical Analysis –
Daily Timeframe

On the daily chart, we can see that EURUSD probed
above the 1.09 handle yesterday but failed to sustain the breakout as the
sellers stepped in with a defined risk above it to position for a drop into the
1.0723 support. The
trend for now remains bullish as the price continues to make higher highs and
higher lows with the moving averages being
crossed to the upside. The buyers will want to see the price breaking higher to
invalidate the bearish setup and start targeting the 1.10 handle.

EURUSD Technical Analysis –
4 hour Timeframe

On the 4 hour chart, we can see that from a risk
management perspective, the buyers will have a much better risk to reward setup
around the trendline where
they will also find the confluence of the
61.8% Fibonacci retracement level
and the daily 21 moving average. The sellers, on the other hand, will want to
see the price breaking below the trendline to invalidate the bullish setup and
increase the bearish bets into the 1.0723 support.

EURUSD Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see that the
buyers have another strong support zone around the 1.0870 where we can find the
confluence of the previous resistance turned
support, the minor trendline, the 61.8% Fibonacci retracement
level and the 4-hour 21 moving average. This is where we can expect the buyers
to step in with a defined risk below the trendline to position for a break
above the 1.09 level and target the 1.10 handle. The sellers, on the other
hand, will want to see the price breaking lower to invalidate this bullish
setup and position for a drop into the major trendline.

Upcoming Events

Today we have the ECB rate decision and the US
Jobless Claims figures, while tomorrow we conclude the week with the US NFP
report.

This article was written by FL Contributors at www.forexlive.com.