EUR/USD Forecast – Can Euro Recover Above 1.1800 Vs US Dollar

EUR/USD Forecast – Can Euro Recover Above 1.1800 Vs US Dollar

  • – The Euro traded lower recently and broke the 1.1780-1.1800 support against the US Dollar.
  • – There is a crucial bearish trend line with resistance at 1.1775 forming on the hourly chart of EUR/USD.
  • – Today in the Euro Zone, the Germany consumer price index for July 2017 was released by the Statistisches Bundesamt Deutschland.
  • – The outcome was in line with the forecast, as there was an increase of 0.4% in the CPI (MoM).

 

German CPI

Today in the Euro Zone, the Germany consumer price index for July 2017 was released by the Statistisches Bundesamt Deutschland. The market was positioned for a rise of around 0.4% in the CPI compared with the previous month.

 

The actual result was in line with the forecast, as there was an increase of 0.4% in the CPI. In terms of the yearly change, the German CPI rose 1.7%, similar to the forecast and the last reading. The Harmonized CPI also remained at 1.5% (YoY). The report added that:

Energy prices were up by 0.9% in July 2017 year on year. The rise in energy prices was thus considerably smaller than the overall rise in prices. In June 2017, Energy prices had still been on the level of June 2016.

 

Overall, the EUR/USD pair may continue to trade in a range above 1.1725 before making an upside break attempt.

 

EUR/USD Technical Analysis

The Euro started a downtrend this week and broke a few key support levels such as 1.1880, 1.1840 and 1.1800 against the US Dollar. The EUR/USD pair traded as low as 1.1688 before starting a correction above the 1.1700 level.

 

EUR/USD Technical Analysis Euro US Dollar

 

The pair managed to move above the 1.1715 support area, but facing sellers near 1.1780. There is a crucial bearish trend line with resistance at 1.1775 forming on the hourly chart of EUR/USD.

 

On the downside, an initial support is around the 23.6% Fib retracement level of the last wave from the 1.1703 low to 1.1784 high. At the moment, the pair is trading just below the trend line resistance of 1.1775 and the 100 hourly simple moving average.

 

So, there is a chance of a minor downside move towards the 50% Fib retracement level of the last wave from the 1.1703 low to 1.1784 high at 1.1740. As long as the pair is above the 1.1700-10 levels, it may attempt a break above 1.1780-1.1800 in the near term.

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