EUR/USD Forecast – Euro Turned Bearish Vs US Dollar?

EUR/USD Forecast – Euro Turned Bearish Vs US Dollar?

  • – The Euro traded towards 1.1900 recently where it faced sellers against the US Dollar.
  • – There was a break below a crucial bullish trend line with support at 1.1865 on the hourly chart of EUR/USD.
  • – Recently in the US, the Gross Domestic Product Annualized reading for Q3 2017 was released by the US Bureau of Economic Analysis.
  • – The outcome was below the forecast of +3.3% as there was a rise in the GDP by 3.2%.

US GDP

Recently in the US, the Gross Domestic Product Annualized reading for Q3 2017 was released by the US Bureau of Economic Analysis. The market was looking for an increase in the GDP by 3.3% compared with the last reading of 3.3%.

 

The actual result was below the forecast of +3.3% as there was a rise in the GDP by 3.2%. The Initial Jobless Claims for the week ending Dec 16, 2017 was also released by the US Department of Labor. The market was looking for an increase from the last reading of 225K to 231K. However, the actual was again disappointing, as there was an increase in the claims from 225K to 245K.

 

The EUR/USD pair faced a lot of sellers recently around 1.1900 and there are chances of it extending declines in the near term.

 

EUR/USD Technical Analysis

The Euro was in a nice uptrend from the 1.1750 low against the US Dollar. The EUR/USD pair moved above the 1.1800 and 1.1850 resistance levels and even settled above the 100 hourly simple moving average.

 

EUR/USD Technical Analysis Euro US Dollar

 

However, the pair failed around the 1.1900 resistance and started a downside move. It broke the 23.6% Fib retracement level of the last wave from the 1.1737 low to 1.1901 high. Moreover, there was a break below a crucial bullish trend line with support at 1.1865 on the hourly chart.

 

The pair is currently under a bearish pressure and it recently found support around the 50% Fib retracement level of the last wave from the 1.1737 low to 1.1901 high. Moreover, the 100 hourly SMA also acted as a support at 1.1825.

 

The pair is currently moving higher, but it may face sellers on the upside near a bearish trend line on the same chart at 1.1860.


Also published on Medium.

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