EUR/USD Forecast – Euro Back above 1.2000 Vs US Dollar

EUR/USD Forecast – Euro Back above 1.2000 Vs US Dollar

  • – The Euro once again grabbed bids and moved above 1.2000 against the US Dollar.
  • – There are two bullish trend lines forming with support at 1.1970 on the hourly chart of EUR/USD.
  • – Today in the Euro Zone, the German Trade Balance for July 2017 was released by the Statistisches Bundesamt Deutschland.
  • – The outcome was below the forecast of €20.3B, as there was a trade surplus of €19.5B.

 

German Trade Balance

Today in the Euro Zone, the German Trade Balance for July 2017 was released by the Statistisches Bundesamt Deutschland. The market was positioned for a trade surplus of €20.3B, compared with the last €21.2B.

 

The actual result was below the forecast of €20.3B, as there was a trade surplus of €19.5B. Exports of goods and services in July 2017 were up by 0.2%, lower than the forecast of 1.25%, but more than the last revised -2.70%. Imports of goods and services in July 2017 were up by 2.2%, lower than the forecast of 2.8%, but more than the last revised -4.4%. The report added that:

The foreign trade balance showed a surplus of 19.5 billion euros in July 2017. In July 2016, the surplus amounted to 19.1 billion euros. In calendar and seasonally adjusted terms, the foreign trade balance recorded a surplus of 19.5 billion euros in July 2017.

 

Overall, the EUR/USD pair is likely to remain in the bullish zone and dips towards 1.2000 are seen as buying opportunity.

 

EUR/USD Technical Analysis

The Euro after a dip towards the 1.1820 against the US Dollar regained bids and was able to move higher. The EUR/USD pair made a nice upside move and traded above 1.1920, 1.2020 and the 100 hourly simple moving average.

 

EUR/USD Technical Analysis Euro US Dollar

 

These are positive signs and means the pair is back in the bullish zone above 1.2000. It recently traded as high as 1.2093 where it faced sellers and currently correcting lower. It has moved below the 23.6% Fib retracement level of the last wave from the 1.1929 low to 1.2092 high.

 

On the downside, there are two bullish trend lines forming with support at 1.1970 on the hourly chart. An intermediate support is near the 50% Fib retracement level of the last wave from the 1.1929 low to 1.2092 high at 1.2011.

 

As long as the pair is above the 1.2000 handle and the trend lines it remains in the bullish zone and can be bought on dips.

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