EUR/USD Forecast – Euro in Major Uptrend Above 1.1850 Vs US Dollar
- – The Euro remained well supported above 1.1800 against the US Dollar and extended gains.
- – There is a crucial bullish trend line with support at 1.1870 forming on the hourly chart of EUR/USD.
- – Today in the Euro Zone, the German Factory orders report for June 2017 was released by the Deutsche Bundesbank.
- – The outcome was above the forecast, as there was an increase of 1% in sales (MoM).
German Factory Orders
Today in the Euro Zone, the German Factory orders report for June 2017 was released by the Deutsche Bundesbank. The market was positioned for a rise of around 0.5% in sales compared with the previous month.
The actual result was above the forecast, as there was an increase of 1% in sales. There was a rise in domestic orders by 5.1%, and on the other hand, there was a decline of around 2% in foreign orders on the previous month. The report added that:
For May 2017, revision of the preliminary outcome resulted in an increase of 1.1% compared with April 2017 (primary +1.0%). Price-adjusted new orders without major orders in manufacturing had increased in June 2017 a seasonally and working-day adjusted 2.0% compared with the previous month.
Overall, the EUR/USD pair remains supported above the 1.1870-50 levels and looks set for more gains in the near term.
EUR/USD Technical Analysis
The Euro remained a nice uptrend this week too and traded above the 1.1800 and 1.1820 levels against the US Dollar. The EUR/USD pair traded as high as 1.19098 before starting a downside correction towards the 1.1840-30 support.
On the downside, there is a crucial bullish trend line with support at 1.1870 forming on the hourly chart of EUR/USD. The pair resumed its uptrend from 1.1830 and currently trading above the 50% Fib retracement level of the last decline from the 1.1909 high to 1.1830 low.
However, there is a major resistance near 1.1890, which is near the 76.4% Fib retracement level of the last decline from the 1.1909 high to 1.1830 low. A break and close above 1.1890-1.1900 is needed for EUR/USD to gain momentum.
On the downside, the 1.1870 support remains a good buy zone with resistances as 1.1890, 1.1910 and 1.1950.
