EUR/USD Forecast – Euro Remains Sell on Rallies Near 1.1740 Vs US Dollar
- – The Euro declined recently and moved below the 1.1750 support against the US Dollar.
- – There is a key bearish trend line forming with resistance at 1.1750 on the hourly chart of EUR/USD.
- – Recently in the Euro Zone, the German Factory orders report for August 2017 was released by the Deutsche Bundesbank.
- – The outcome was above the forecast of +0.7%, as there was a rise in orders by +3.6% (MoM).
German Factory Orders
Recently in the Euro Zone, the German Factory orders report for August 2017 was released by the Deutsche Bundesbank. The market was positioned for a rise in orders by 0.7% compared with the previous month.
The actual result was above the forecast of +0.7%, as there was a rise in orders by +3.6%. Looking at the yearly change, the market was looking for a rise of 4.7% in orders, but the actual was +7.8%. It was also way higher than the last increase of +5%. The report added:
In August 2017, domestic orders increased by 2.7% and foreign orders by 4.3% on the previous month. New orders from the euro area were down 1.0%, new orders from other countries increased 7.7% compared to July 2017.
The result was positive and might push the EUR/USD pair higher towards 1.1730, but upsides are likely to remain capped.
EUR/USD Technical Analysis
The Euro declined during the past few sessions after making a short-term top above 1.1770 against the US Dollar. The EUR/USD pair declined below the 1.1740 and 1.1720 support levels and settled below the 100 hourly simple moving average.
The pair traded as low as 1.1685 and is currently attempting a short-term correction. On the upside, an initial resistance is around the 23.6% Fib retracement level of the last decline from the 1.7786 high to 1.1685 low.
However, the most important resistance is near 1.1740 and the 50% % Fib retracement level of the last decline from the 1.7786 high to 1.1685 low. Moreover, there is a key bearish trend line forming with resistance at 1.1750 on the hourly chart.
Therefore, as long as the pair is below the 1.1750 resistance and the 100 hourly SMA, it remains sell on rallies in the short term.
