EUR/USD Forecast – Euro To Dollar Remains Sell Near 1.1220

EUR/USD Forecast – Euro To Dollar Remains Sell Near 1.1220

  • – The Euro moved down recently and broke a major support at 1.1200 against the US Dollar.
  • – There is a major bearish trend line formed with resistance at 1.1220 on the hourly chart of EUR/USD.
  • – Recently in the Euro Zone, the Gross Domestic Product for Q1 2017 released by the Eurostat posted an increase of 0.6%.

 

Euro Zone GDP

Recently in the in the Euro Zone, the Gross Domestic Product for Q1 2017 was released by the Eurostat. The market was positioned for an increase of 0.5% in Q1 2017, compared with the previous quarter.

 

However, the actual result was above the forecast, the increase was 0.6% in Q1 2017. In terms of the yearly change, the Euro Zone GDP posted an increase of 1.9%. The report mentioned that “Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 1.9% in the euro area and by 2.1% in the EU28 in the first quarter of 2017, after +1.8% and +2.0% respectively in the previous quarter.”

 

The EUR/USD pair remains under bearish pressure and likely to face sellers near 1.1200 and 1.1220.

 

EUR/USD Technical Analysis

The Euro moved down recently and declined towards the 1.1180 support against the US Dollar. The EUR/USD fell below a key support and now looking to recover from the 1.1178 low, but could face a lot of hurdles in the near term.

 

EURUSD Euro US Dollar

 

On the upside, the broken support at 1.1200 may now act as a resistance along with the 23.6% Fib retracement level of the last decline from the 1.1282 high to 1.1178 low. There is also a crucial bearish trend line formed with resistance at 1.1220 on the hourly chart of EUR/USD.

 

The same trend line resistance is near 1.1218-20, which is another hurdle. The stated levels coincide with the 38.2% Fib retracement level of the last decline from the 1.1282 high to 1.1178 low. If the pair corrects further higher, the 1.1200 resistance may act as a sell zone. Moreover, the 100 hourly simple moving average at 1.1250 and the 50% Fib retracement level of the last decline from the 1.1282 high to 1.1178 low might also prevent upsides.

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