On Tuesday, the common currency hit a 8-week high against the U.S. dollar as the combination of the euro zone's service-sector PMI, better-than-expected retail sales and disappointing U.S. trade data weighted on the exchange rate. In reaction to these circumstances, EUR/USD approached the annual high and is currently trading in the narrow range. What’s next? Will the USD Index give us any interesting clues?

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Earlier today, the U.S. dollar moved lower against its Canadian and Australian counterparts after official data showed that the U.S. trade deficit narrowed to $40.38 billion in March, from $41.87 billion in February, missing analysts expectations. In reaction to this news AUD/USD and USD/CAD moved sharply and approached their important levels. Did these circumstances change the outlook for both currency pairs?

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Earlier today, the Institute of Supply Management showed that its non-manufacturing purchasing managers' index climbed to a 5-month high of 55.2 in the previous month, beating expectations for an increase to 54.1. As it turned out, this strong U.S. service sector data did little to weaken the common currency. Basically, today’s session in the EUR/USD exchange rate can be described as “flat”. This doesn’t mean that the next big move is not on the horizon – the opposite seems to be the case.

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Earlier today, the U.S. dollar moved higher against the common currency after strong U.S. employment data. The Labor Department showed that the U.S. economy added 288,000 jobs in the previous month, well above expectations for a 210,000 increase. The report also showed that the U.S. unemployment rate dropped to 6.3% in April, while analysts had expected a fall to 6.6%. In reaction to these better-than-expected numbers, the euro declined sharply, approaching its important support. Will history repeat itself once again?

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Earlier today, the U.S. currency moved lower after data showed that U.S. gross domestic product rose at an annual rate of 0.1% in the first quarter, well below expectations for a 1.2% growth. In reaction to this, the greenback declined sharply against the Swiss franc and reached the long-term support line once again. Will it withstand the selling pressure in the following days?

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