Sasha Singh
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EURUSD : Preparing For a Breakout

EUR ended yesterday’s session higher against US Dollar after the March Manufacturing PMI for US showed that the U.S. economy is still struggling to gain momentum following slowdown due to adverse weather. However EUR today trimmed its gain after the German Ifo Business Climate report released. According to the report, the index declined to 110.7 in March from 111.3 in February which Economists expecting to decline to 111.0. The current component of the index increased to the highest level since April 2012 whereas the expectations component of the index weakened as Ukraine crisis still weighs.

On the 4 hour chart, we can see that the pair is consolidating within a descending triangle. Technically the pair should fall down by breaking the support trend line. If the breakout occurs from the support level, the next nearest support the pair will find are at 1.3764 and 1.3721. And if the pair doesn't breakout the pair may go up to the level of 1.3879. Investors are waiting for the US reports on Consumer Confidence and New Home Sales releasing today at 10:00 AM EDT for the sign of recovery.