EUR/USD Forecast – Can Euro Hold This Vs US Dollar?

EUR/USD Forecast – Can Euro Hold This Vs US Dollar?

  • – The Euro is currently trading lower and is testing a major support near 1.1765 against the US Dollar.
  • – There is a major bullish trend line forming with support at 1.1765 on the hourly chart of EUR/USD.
  • – Recently in the US, the Manufacturing Purchasing Managers Index (PMI) for Dec 2017 (Prelim) was released by the Markit Economics.
  • – The outcome was above the forecast of 54.0 as there was a rise in the PMI from 53.9 to 55.0.

US Manufacturing PMI

Recently in the US, the Manufacturing Purchasing Managers Index (PMI) for Dec 2017 (Prelim) was released by the Markit Economics. The market was looking for an increase in the PMI in Dec 2017 from the last reading of 53.9 to 54.0.

 

The actual result was above the forecast of 54.0 as there was a rise in the PMI from 53.9 to 55.0. On the other hand, the US Services Purchasing Managers Index (PMI) for Dec 2017 (Prelim) was forecasted to increase from 54.5 to 55.0. However, the result was lower, as there was a decline from 54.5 to 52.4.

 

The EUR/USD pair was seen trading lower recently from the 1.1860 swing high and is currently under a lot of pressure.

 

EUR/USD Technical Analysis

The Euro made a decent upside move from the 1.1715 swing low and moved above 1.1800 against the US Dollar. The EUR/USD pair traded above the 1.1840 level and the 100 hourly simple moving average, but failed to gain traction above 1.1860.

 

EUR/USD Technical Analysis Euro US Dollar

 

The pair started a downside move and traded below the 1.1800 handle. The current decline is a bearish signal, but the pair is approaching a major support at 1.1765. There is a major bullish trend line forming with support at 1.1765 on the hourly chart.

 

The trend line support and somehow the 100 hourly SMA is acting as a support above 1.1760. The pair is currently recovering, but facing sellers near the 23.6% Fib retracement level of the last decline from the 1.1862 high to 1.1763 low.

 

Overall, the pair might recover in the near term above 1.1800, but it needs to stay above 1.1765 in order to avoid more declines.


Also published on Medium.

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