- – The Euro moved down towards 1.0855 against the US Dollar before starting a recovery.
- – The EUR/USD pair is about to break a contracting triangle pattern with support at 1.0900 on the hourly chart.
- – Today in the Euro Zone, the German GfK Consumer Confidence for May 2017 posted an increase from 9.8 to 10.2.
German GfK Consumer Confidence
Today in the Euro Zone, German GfK Consumer Confidence for May 2017 was published. The market was positioned for the Confidence index to increase from the last reading of 9.8 to 9.9.
However, the result better, as the German GfK Consumer Confidence managed to post an increase to 10.2 in May 2017. It was a positive sign, and the report stated that “increasing economic optimism as well as a more moderate increase in prices mean that the income prospects of German citizens, which were already at a high level, have increased even further’. The income expectation indicator also posted a rise of 14.1 points, and currently stands at 57.5 points, which is brilliant.
Overall, the EUR/USD pair is currently not gaining traction, which means there can be a minor decline to 1.0880 before the pair recovers.
EUR/USD Technical Analysis
The Euro recently dipped below 1.0900 and traded as low as 1.0854 against the US Dollar. Later, the EUR/USD pair found support and moved above the 23.6% Fib retracement level of the last decline from the 1.0950 high to 1.0854 low.
The pair traded higher and tested the 1.0900 resistance area where it faced offers. The pair also failed to break the 61.8% Fib retracement level of the last decline from the 1.0950 high to 1.0854 low. At the moment, there is a contracting triangle pattern with support at 1.0900 formed on the hourly chart.
The pair is currently struggling to clear the 1.0910 resistance area. So, there is a chance of a minor dip towards 1.0880 before the pair can resume the uptrend. On the upside, the next hurdle could be at the 76.4% Fib retracement level of the last decline from the 1.0950 high to 1.0854 low at 1.0927. The overall trend is positive, but the pair needs to gain momentum above 1.0910 for more gains.Tags: EUR/USD Technical Analysis, Euro, US Dollar