The EUR/USD has increased sharply and has resumed the bullish momentum, is increasing sharply as the USDX plunges aggressively, the index has fallen much below the 97.58 static support and could reach new highs till the end of the day if the United States economic figures will come worse. The USD edges lower ahead of the FOMC rate decision, the Federal Reserve will publish the Federal Reserve Rate, which is expected to remain steady at 0.50%, we’ll see how the pair will react after this decision, the FOMC Statement could bring more volatility on the currency market, so you should be careful tonight.
The Euro has increased significantly even if the Euro-zone data have come in mixed, the Spanish Manufacturing PMI has increased from 52.3 to 53.3, has beaten the 52.7 points, signaling that the expansion continues in the manufacturing sector, while the Italian Manufacturing PMI has slipped from 51.0 to 50.9 points, despite that the economists have predicted an increase to 51.5 points. The Euro has received a helping hand from the French Final Manufacturing PMI indicator, which has increased from 51.3 to 51.8, has exceeded the 51.3 estimate.
The European currency has appreciated also because the German Unemployment Change has fallen to -13K, while the German Final Manufacturing PMI has decreased a little from 55.1 to 55.0 points.
The Euro-zone Final Manufacturing PMI has increased less than the specialists estimate, from 53.3 to 53.5, but unfortunately has come below the 55.3 forecast.
The currency pair could increase further because the USD has received a punch from the ADP Non-Farm Employment Change has disappointed, the United States has added only 147K jobs in October, less than the 166K estimate, has indicator has come much blow the 202K jobs from September.


The price has increased sharply and has managed to jump through the upper median line (uml) of the descending pitchfork, could approach also the descending sliding parallel line where he may find resistance again. The price could decrease again, only if the Federal Reserve will give a strong signal for December, personally I don’t believe that the FOMC members will vote to hike the rate sooner than December. The FED could be forced to hike the rate only if the United States economic data fill come better in the coming weeks, otherwise the FED will delay to increase the Federal Funds Rate. We’ll have a larger rebound only if the price will jump and will stabilize above the sliding parallel line (short descending dotted line) and above the 1.1123 static resistance, the rate could increase further also because has failed to touch the first warning line (WL1) of the major ascending pitchfork.


You can see on the H4 chart that the price has broken the upper median line (uml), if will stabilize above this level, then most likely will be attracted by the confluence area formed at the intersection between the descending sliding line and the 1.1123 level.

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