The US dollar kept trimming off gains against the Euro since October 6, 2014 after the market met support at 1.24992. The bulls maintained there stands as a possible reversal is about to emerge in the pair, with the markets forming higher lows in the 4 hours time-frame. More-so, reports from the US economy shows slackness after a disappointing data was released last week in the US Retail Sales which conflicts the improving figure coming from the labor sector of the economy.
Weekly bias remains bullish as a fresh upward cross of the 21 and 55 Ema’s are seen on the 4 hours charts. Also the Relative Strength Index, Moving Average Convergence Divergence and SSRC stochastic Oscillator are all indicating bullish momentum is in play. A break of 1.28849 resistance would bring further rise to 1.3000/1.31000 psychological zones.
However on the downside, a break of 1.26234 support might bring a retest downward to 1.24992 supports. A key fundamental look out from the US economy this week would be the New Home Sales which is scheduled later on Friday.