• EUR/USD rose sharply on Friday as euro was boosted by weaker US dollar and upbeat Euro zone business activity data and .
• Eurozone business saw a modest return to growth in the new year, with stable services activity in January
• HCOB's preliminary composite Eurozone PMI, compiled by S&P Global, rose to 50.2 in January from 49.6 in December, edging above the 50 mark that separates growth from contraction.
• Germany's private sector stabilized in January, ending a six-month contraction, while in France, the services industry shrank further due to weak demand and political uncertainty.
• Immediate resistance is located at 1.0533( Dec 17th high), any close above will push the pair towards 1.0609(61.8%fib).
• Strong support is seen at 1.0470 (38.2%fib) and break below could take the pair towards 1.0340 (23.6%fib).
Recommendation: Good to buy around 1.0500 , with stop loss of 1.0430 and target price of 1.0610
