EUR/USD Forecast – Euro to Decline Below 1.2250 Vs US dollar?

EUR/USD Forecast – Euro to Decline Below 1.2250 Vs US dollar?

  • – The Euro started a downside move and traded below the 1.2360 support against the US Dollar.
  • – There is a major bearish trend line forming with resistance at 1.2330 on the hourly chart of EUR/USD.
  • – Recently in the Euro Zone, the German business sentiment index for Feb 2018 was released by the CESifo Group.
  • – The outcome was below the forecast of 117.0 as the index declined from the last reading of 117.6 to 115.4.

German IFO Business Climate Index

Recently in the Euro Zone, the German business sentiment index for Feb 2018 was released by the CESifo Group. The market was looking for the index to decline from the last reading of 117.6 to 117.0 in Feb 2018.

 

The actual result was below the forecast of 117.0 as the index declined from the last reading of 117.6 to 115.4. The German IFO Current Assessment index also posted a decline from the last revised reading of 127.8 to 126.3. Moreover, the IFO Expectations index fell from the last revised reading of 108.3 to 105.4.

 

The EUR/USD pair is facing sellers after it broke the 1.2400 and 1.2360 support levels, which could increase pressure in the short term.

 

EUR/USD Technical Analysis

The Euro started a fresh downside wave from well above the 1.2450 level against the US Dollar. The EUR/USD pair declined below a couple of support levels such as 1.2400 and 1.2360 to settle below the 100 hourly simple moving average.

 

EUR/USD Technical Analysis Euro US Dollar

 

The pair recently traded as low as 1.2259. It started an upside correction and moved above the 1.2300 level. However, the pair is struggling to break the 23.6% Fib retracement level of the last decline from the 1.2551 high to 1.2259 low.

 

More importantly, there is a major bearish trend line forming with resistance at 1.2330 on the hourly chart of EUR/USD. The trend line resistance near 1.2330 is also around the 100 hourly SMA. Therefore, a break above the 1.2330 level won’t be easy for buyers.

 

On the downside, the 1.2280 level is a decent support followed by 1.2250. Below 1.2250, the pair may retest the 1.2200 level.


Also published on Medium.

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