On Friday morning, the EUR/USD currency pair exceeded 1.1300 level.
The pair could gain support from the monthly R2 and continue to extend gains in the short term.
US ISM Non-Manufacturing PMI
The Euro depreciated against the US Dollar, following the US ISM Non-Manufacturing PMI survey results release on Wednesday at 15:00 GMT. The EUR/USD exchange currency rate lost 21 pips or 0.19% after the release. The Euro continued trading at the 1.1110 level against the Greenback after the release.
The Institute for Supply Management (ISM) released the US ISM Non-Manufacturing PMI survey results, which came out better-than-expected of 57.3 compared with the forecast of 54.9.
Anthony Nieves, Chair of the Institute for ISM Non-Manufacturing Business Survey Committee: "According to the NMI, 16 non-manufacturing industries reported growth. The non-manufacturing sector reflected continued growth in February. Most respondents are concerned about the coronavirus and its supply chain impact. They also continue to have difficulty with labor resources. They do remain positive about business conditions and the overall economy."
Economic Calendar Analysis
Today, the US employment data will be released at 13:30 GMT. The event has caused moves from 15.5 to 41.4 pips since October.
This event consists of three data sets – the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
Next week there will be couple events that could impact the EUR/USD pair.
On Wednesday, March 11, the US CPI and Core CPI will be published at 12:30 GMT.
On Thursday, March 12, the European Central Bank will make its rate announcement, as the Main Refinancing Rate and the Monetary Policy Statement will be published at 12:45.
Meanwhile, next week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
EUR/USD hourly chart's review
On Thursday, the EUR/USD currency pair raised to the 1.1250 level. During today's morning, the pair surpassed the monthly R2 at 1.1285.On the one hand, the exchange rate could continue to go upwards within the following trading session. However, note that the rate would have to surpass the weekly R3 at 1.1367.
If the given level holds, it is likely that a reversal south could occur in the nearest future. In this case it is unlikely that the pair could drop below 1.1180 due to the support formed by the 55– and 100-hour SMAs, as well the monthly R1.
Hourly Chart
On the daily candle chart, the rate has reached above the resistance of the daily simple moving averages. Moreover, the SMAs began to support the rate on Monday, and the pair pierced the upper boundary of the long-term descending channel.
Daily chart
on Friday morning, the sentiment was 72% short.
Meanwhile, set up pending orders were bearish, as 77% of orders in the 100-pip range were to sell and 23% were to buy.