EUR/USD Forecast – Euro Eyeing Further Gains Vs US Dollar?
- – The Euro is in an uptrend above the 1.1750 support area against the US Dollar.
- – There is a major bullish trend line forming with support at 1.1755 on the hourly chart of EUR/USD.
- – Recently in the US, the Industrial Production for Oct 2017 was released by the Board of Governors of the Federal Reserve.
- – The outcome was above the forecast of +0.5% as there was a rise of 0.9% in the Industrial Production.
US Industrial Production
Recently in the US, the Industrial Production for Oct 2017 was released by the Board of Governors of the Federal Reserve. The market was positioned for a 0.5% rise in the Industrial Production in Oct 2017 compared with the previous month.
The actual result was above the forecast of +0.5% as there was a rise of 0.9% in the Industrial Production. It was even above the last revised reading of +0.4%. The report added:
The index for utilities rose 2.0 percent, but mining output fell 1.3 percent, as Hurricane Nate caused a sharp but short-lived decline in oil and gas drilling and extraction.
The EUR/USD corrected a few pips, but the overall trend is positive as long as the pair is above 1.1750.
EUR/USD Technical Analysis
The Euro maintained a bid tone this week above 1.1700 against the US Dollar. The EUR/USD pair started an upside move and was able to move above the 1.1700 and 1.1750 resistance levels to close above the 100 hourly simple moving average.
The pair recently traded as high as 1.1860 and later started a downside correction. It moved below the 23.6% Fib retracement level of the last wave from the 1.1664 low to 1.1860 high. However, the downside move was limited by the 1.1760 support and the 50% Fib retracement level of the last wave from the 1.1664 low to 1.1860 high.
There is also a major bullish trend line forming with support at 1.1755 on the hourly chart, which is also positioned near the 100 hourly SMA. The pair is once again gaining momentum above 1.1780 and looks set to continue moving higher.
Any dips from the current levels toward 1.1780 and 1.1760 can be seen as a buying opportunity in the near term.
