EUR/USD Volatility Rises Amid Strong US Manufacturing Data

The EUR/USD pair has been wavering after the US published strong manufacturing PMI numbers and the Federal Reserve left interest rates unchanged. The US dollar jumped following the reports, which showed that the manufacturing sector continued expanding in July with a reading of 53.9, higher than expected.

Despite the Federal Reserve's decision to leave interest rates between 3.50% and 3.75%, officials were relatively divided on whether they will hike rates later this year. The euro is also reacting to reports that the US sold euros in its rescue for the Japanese yen last week, which will likely continue if the yen resumes its recent downtrend.

The EUR/USD pair has been forming a double-bottom pattern with a neckline of 1.1483 on the daily chart and has moved above the 50-day Exponential Moving Average (EMA). The MACD indicator is also rising, indicating that the pair will likely retest the neckline and resume its uptrend.