EUR/USD Forecast – Euro bullish Above 1.2400 US dollar?

EUR/USD Forecast – Euro bullish Above 1.2400 US dollar?

  • – The Euro surged higher this week and traded above the 1.2500 resistance against the US Dollar before starting a correction.
  • – There is a major bullish trend line forming with current support at 1.2405 on the hourly chart of EUR/USD.
  • – Recently in the US, the number of New Home sales for Dec 2017 was released by the US Census Bureau.
  • – The outcome was below the forecast of -7.9% as there was a decline in sales by 9.3%.

US New Home Sales

Recently in the US, the number of New Home sales for Dec 2017 was released by the US Census Bureau. The market was looking for a decrease in sales by around 7.9% in Dec 2017 compared with the previous month.

 

The actual result was below the forecast of -7.9% as there was a decline in sales by 9.3%. The last reading was also revised down from +17.5% to +15.0%. The report added that:

 

This is 9.3 percent (±11.0 per cent)* below the revised November rate of 689,000, but is 14.1 percent (±13.0 percent) above the December 2016 estimate of 548,000. An estimated 608,000 new homes were sold in 2017. This is 8.3 percent (±4.1 percent) above the 2016 figure of 561,000.

 

The EUR/USD pair remains in an uptrend as long as the 1.2400 support area is intact, and the pair may continue to move higher.

 

EUR/USD Technical Analysis

The Euro surged higher this week and gained by more than 250 pips to trade above the 1.2500 level against the US Dollar. The EUR/USD pair traded above the 1.2400 and 1.2500 levels and is currently placed well above the 100 hourly simple moving average.

 

EUR/USD Technical Analysis Euro US Dollar

 

The pair formed a high at 1.2537 from where a sharp downside wave was initiated. However, the pair found support around the 1.2370-80 level and is currently holding ground. There is a major bullish trend line forming with current support at 1.2405 on the hourly chart.

 

The pair is moving higher and is currently above the 23.6% Fib retracement level of the last decline from the 1.2537 high to 1.2365 low.

 

The pair will most likely continue to move higher back towards 1.2500. Above the 1.2500 level, the pair may head towards the 1.2540 level.


Also published on Medium.

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