EURUSD: Short Term Bullish Picture

Euro is adding 0.09 percent to 1.1302 after a quiet Asian trading session as traders digest the FED decision and the dovish approach. Earlier today the pair got a lift from better than expected German figures. The German Markit PMI Composite index came at 52.6 beating analyst’s expectations of 52.5 in June. The Manufacturing PMI also beat expectations of 44.5 in June and came up to 45.4. That were the best numbers we got from Germany after a long time. The Eurozone Markit PMI Composite also came better than forecasts of 51.8 for June to 52.1.

On the technical side, bulls are building on dovish FED the short term momentum which collapsed the previous week after Mario Draghi’s comments. Currently the pair hit the daily high at 1.1314 and retraced back to 1.13, yesterday the pair also rejected at that area. A break above can lead prices up to 1.1352 and the 200 day moving average resistance. On the downside the pair will find support at 1.1281 the low from Asian session while more bids will emerge at 1.1262 the 50 hour moving average.