EUR/USD Forecast – Euro Breaks Key Resistance Vs US dollar

EUR/USD Forecast – Euro Breaks Key Resistance Vs US dollar

  • – The Euro made a nice upside move and broke the 1.2000 resistance against the US Dollar.
  • – There was a break above a major bearish trend line with resistance at 1.1990 on the hourly chart of EUR/USD.
  • – Recently in China, the Trade Balance report for Dec 2017 was released by the General Administration of Customs of the People’s Republic of China.
  • – The outcome was above the forecast of $37.00B as there was a trade surplus of $54.69B.

China’s Trade Balance

Recently in China, the Trade Balance report for Dec 2017 was released by the General Administration of Customs of the People’s Republic of China. The market was looking for a trade surplus of $37.00B compared with the last reading of $40.21B.

 

The actual result was above the forecast of $37.00B as there was a trade surplus of $54.69B. China’s Imports of goods and services in Dec 2017 increased by 4.5%, which was less than the forecast of 13.0%. Moreover, exports of goods and services in Dec 2017 increased by 10.9%, which was more than the forecast of 9.1%

 

The EUR/USD pair is currently placed nicely in the bullish zone and the pair may continue to rise as long as above 1.2000.

 

EUR/USD Technical Analysis

The Euro started a decent upside move from the 1.1928 swing low against the US Dollar. The EUR/USD pair traded higher and broke the 1.1950 and 1.1960 resistance levels. It initiated a nice uptrend and the pair was able to break the 1.2000 level.

 

EUR/USD Technical Analysis Euro US Dollar

 

During the upside move, there was a break above a major bearish trend line with resistance at 1.1990 on the hourly chart. The pair is now well above the 1.2000 level and the 100 hourly simple moving average. It traded as high as 1.2065 recently and it looks set for more gains.

 

An initial support on the downside is around the 23.6% Fib retracement level of the last wave from the 1.1928 low to 1.2065 high.

 

If the pair corrects lower from the current levels, it is likely to find support around 1.2020 and 1.2000. On the upside, a break above 1.2065 could push EUR/USD towards 1.2100.


Also published on Medium.

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