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EURUSD : Might Extend its Gains

EURUSD today rallying on upbeat euro zone data. Prior to the surge the pair was trading within a narrow zone or a channel. It broke the resistance trend line of the channel and rose to 7 weeks high. 

The surge came after the data showed that euro zone retail sales rose .3% in March beating economist’s expectations for a .2% fall. Another report showed that the unemployment in Spain fell down by 111600 in April beating the expected decline of 49100. Other reports showed that Spain’s services PMI and Italian services PMI came out to be strong, beating the economist’s expectation. EUR is trading higher against all its major counterparts except Pound. Demand for Pound was supported by the release of upbeat services PMI and the expectation that Bank of England could raise interest rates ahead of other central banks.

Looking at the daily chart, the pair still seems to be bullish. Currently the pair might find resistance at 1.3944 and move down but it will find support from the rising support trend line. But once it will reach the apex it might break this key resistance. Also seems like 50 day SMA is providing support to the pair.