EUR/USD Forecast – Euro Eyes an Upside Break Vs US Dollar?

EUR/USD Forecast – Euro Eyes an Upside Break Vs US Dollar?

  • – The Euro remains in a bullish zone above the 1.1840 support against the US Dollar.
  • – There was a break above a short-term bearish trend line at 1.1860 on the hourly chart of EUR/USD.
  • – Recently in the US, the Chicago Purchasing Managers Index for Nov 2017 was released by ISM-Chicago, Inc.
  • – The outcome was above the forecast of 63.0 as the index came in at 63.9.

 

Chicago Purchasing Managers Index

Recently in the US, the Chicago Purchasing Managers Index for Nov 2017 was released by ISM-Chicago, Inc. The market was positioned for a decline in the index from 66.2 to 63.0 in Nov 2017.

 

The actual result was above the forecast of 63.0 as the index came in at 63.9. However, we cannot ignore the fact that there was a decline from the last reading of 66.2 to 63.9. The report added:

 

Despite receding from October’s six-and-a-half year high, optimism among businesses recorded the fourth highest outturn this year. The Barometer has expanded for 21 straight months and is poised to see out 2017 in solid fashion.

 

The EUR/USD pair might continue to move higher and it could soon break 1.1940 for more gains in the near term.

 

EUR/USD Technical Analysis

The Euro made a nice upside move from the 1.1808 swing low against the US Dollar. The EUR/USD pair was seen consolidating above the 1.1800 handle for some time before buyers stepped in and pushed the pair above the 1.1840 level and the 100 hourly simple moving average.

 

EUR/USD Technical Analysis Euro US Dollar

 

During the upside move, there was a break above a short-term bearish trend line at 1.1860 on the hourly chart. The pair tested another bearish trend line at 1.1930 and is currently consolidating gains below the same trend line.

 

On the downside, there is a decent support near the 38.2% Fib retracement level of the last wave from the 1.1808 low to 1.1936 high. A break above the trend line resistance is needed for buyers to take the pair towards 1.1960-70 in the near term.

 

Should there be any correction from the current levels, the pair might find support near 1.1880 and the 100 hourly simple moving average.


Also published on Medium.

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