EUR/USD Forecast – What’s Next for Euro When Market Reopens?

EUR/USD Forecast – What’s Next for Euro When Market Reopens?

  • – The Euro is trading in the bullish zone above 1.1950 against the US Dollar.
  • – There are two important bullish trend lines forming with support at 1.1980 and 1.1920 on the hourly chart of EUR/USD.
  • – Recently in the Euro Zone, the Germany consumer price index preliminary reading for Dec 2017 was released by the Statistisches Bundesamt Deutschland.
  • – The outcome was above the forecast of +1.5% as there was a rise in the CPI by 1.7% (YoY).

German CPI

Recently in the Euro Zone, the Germany consumer price index preliminary reading for Dec 2017 was released by the Statistisches Bundesamt Deutschland. The market was looking for an increase in the CPI by 1.5% in Dec 2017 compared with the same month a year ago.

 

The actual result was above the forecast of +1.5% as there was a rise in the CPI by 1.7%. Looking at the monthly change, the CPI increased by 0.6%, which was better than the forecast of +0.5% and also above the last reading of +0.3%. The report added that:

 

In December 2017, the harmonised index of consumer prices for Germany, which is calculated for European purposes, is expected to increase by 1.6% year on year and 0.8% on November 2017. On an annual average, the harmonised index of consumer prices is expected to be up 1.7% in 2017 as compared with a year earlier.

 

The EUR/USD pair remains in a decent uptrend and it will most likely move above the 1.2000 level in the near term.

 

EUR/USD Technical Analysis

The Euro made a nice upside move recently above the 1.1900 level against the US Dollar. The EUR/USD pair moved above the 1.1940 and 1.1950 resistance levels and even traded a few pips above the 1.2000 handle this past week.

 

EUR/USD Technical Analysis Euro US Dollar

 

The pair traded as high as 1.2025 and is currently correcting lower. It has breached the 23.6% Fib retracement level of the last wave from the 1.1922 low to 1.2025 high. On the downside, there are two important bullish trend lines forming with support at 1.1980 and 1.1920 on the hourly chart.

 

The first trend line is very important since it is near the 50% Fib retracement level of the last wave from the 1.1922 low to 1.2025 high.

 

Therefore, buying dips remain a good option when the market opens as long as EUR/USD is above the 1.1920 support level.


Also published on Medium.

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