EUR/USD Forecast – Euro Consolidating Gains Above 1.1620 Vs US Dollar

EUR/USD Forecast – Euro Consolidating Gains Above 1.1620 Vs US Dollar

  • – The Euro surged higher recently and cleared the 1.1600 handle against the US Dollar.
  • – A descending channel pattern with resistance at 1.1515 on the hourly chart of EUR/USD was cleared for an upside move.
  • – Today in the Euro Zone, the current account figure of Greece for May 2017 was released by the Bank of Greece.
  • – The outcome was around the forecast, as there was a trade deficit of €-0.582B (YoY), a bit more than the last €-0.462B.

 

Greece Current Account

Recently in the Euro Zone, the current account figure of Greece for May 2017 was released by the Bank of Greece. The market was positioned for a trade deficit of €-0.50B compared with the same month a year ago.

 

The actual result was around the forecast, as there was a trade deficit of €-0.582B (YoY), a bit more than the last €-0.462B. One important point to note was an increase of more than 15% in non-oil exports of goods and there was a rise of 17.5% in oil exports. The report added that:

A €145 million rise in the surplus of the services balance is for the most part due to a 40.4% rise in net – mainly sea – transport receipts, as well as to higher net travel and other services receipts. In May 2017, non-residents’ arrivals and the corresponding receipts showed an increase of 1.5% and 1.7%, respectively.

 

Overall, the EUR/USD pair may correct a few pips from the current levels, but more likely to find support near 1.1620-1.1600.

 

EUR/USD Technical Analysis

The Euro this week surged higher and broke the 1.1550 and 1.1600 resistance levels against the US Dollar. The EUR/USD pair traded as high as 1.1676 recently and currently consolidating in a range above the 1.1640 level.

 

EUR/USD Technical Analysis Euro US Dollar

 

To initiate the upside move, there was a break above a descending channel pattern with resistance at 1.1515 on the hourly chart and the 100 hourly simple moving average. The pair is now forming an ascending channel or a flag pattern with support at 1.1630 and resistance near 1.1670.

 

An initial support is around the 23.6% Fib retracement level of the last wave from the 1.1478 low to 1.1676 high, which is also near the channel support.

 

So, if the pair dips from the current levels, it may find support near 1.1630 for another ride above the 1.1670 level in the near term.

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