The euro extended it’s gains yesterday as economic data was upbeat, including the regional data from Germany.
The U.S. and Japan markets were closed but the currency managed to push higher amid lower trading volumes. The broad flash PMI numbers showed a positive increase adding to the gains.
EURUSD (1.1855): The euro currency was seen extending the gains amid holiday thin trading yesterday. Price action remains biased upwards as the EURUSD is approaching a 2-month high. However, the recovery above the resistance level of 1.1843 – 1.1822 signals some weakness. Therefore, there is a strong risk of EURUSD pushing lower with the resistance level coming back into play. Alternately, if EURUSD manages to continue trading above this resistance level, then further upwards movement can be expected.