EURUSD Outlook: Weak US Data Help Euro Bulls

The Euro maintains bullish in early American trading tone and eventually broke 1.1700 barrier which temporarily capped the advance this morning. Strong advance from 1.1530 (23 Aug trough) holds in red for the third consecutive day and eyes key near-term barrier at 1.1750 zone (daily cloud top/Fibo 38.2% of 1.2476/1.1300). Fresh advance was helped by weaker than expected US data released today, which put the greenback under fresh pressure. Trade gap widened in July to $72.2 billion vs forecasted -$68.6 billion and $67.9 billion gap in June. Also, US HPI dipped to 6.3% in June, against forecast/previous month figure at 6.5%. Bulls came closer to 1.1750 pivot, break of which would generate bullish signal for stronger correctio of larger 1.2476/1.1300 Mar-Aug descend. Firmly bullish tech on daily chart continue to underpin the action, as momentum continues to trend higher in positive territory, daily Tenkan-sen/Kijun-sen formed bullish cross and MA’s remain in bullish setup. Lift and close above daily cloud would open way towards barriers at 1.1790 (09 July high) and 1.1848 (14 June high) in extension. Overbought slow stochastic suggests that corrective action could be expected in coming sessions, but so far without firmer signals.

Res: 1.1750; 1.1761; 1.1790; 1.1848
Sup: 1.1700; 1.1658; 1.1631; 1.1615