EUR/USD Forecast – Euro to Decline Below 1.2280 US Dollar?

EUR/USD Forecast – Euro to Decline Below 1.2280 US Dollar?

  • – The Euro formed a short-term top near 1.2440 and declined against the US Dollar.
  • – There was a break below a major bullish trend line with support at 1.2370 on the hourly chart of EUR/USD.
  • – Recently in China, the Consumer Price Index for Feb 2018 was released by the National Bureau of Statistics of China.
  • – The outcome was above the forecast of +0.8% as there was a rise of 1.2% in the CPI (MoM) in Feb 2018.

China’s Consumer Price Index

Recently in China, the Consumer Price Index for Feb 2018 was released by the National Bureau of Statistics of China. The market was looking a rise of around 0.8% in the CPI in Feb 2018 compared with the previous month.

 

The actual result was above the forecast of +0.8% as there was a rise of 1.2% in the CPI (MoM) in Feb 2018. The yearly change was +2.9%, which was more than the forecast of +2.5% and it is also more than the last reading of +1.5%.

 

The market sentiment is currently positive, but the EUR/USD pair remains at a risk of more declines below the 1.2280 level.

 

EUR/USD Technical Analysis

The Euro traded higher this week and moved above the 1.2300 handle against the US Dollar. The EUR/USD traded high as 1.2446 before it faced sellers and started a downside move. It declined and traded below the 1.2380 support and the 100 hourly simple moving average.

 

EUR/USD Technical Analysis Euro US Dollar

 

During the downside, the pair broke the 1.2350 support and 1.2300. Moreover, there was a break below a major bullish trend line with support at 1.2370 on the hourly chart of EUR/USD. The pair traded as low as 1.2294 and it is currently consolidating losses.

 

On the upside, an initial resistance is around the 23.6% Fib retracement level of the last decline from the 1.2446 high to 1.2294 low. However, the most important hurdle is near the 1.2370 level and the 50% Fib retracement level of the last decline from the 1.2446 high to 1.2294 low.

 

On the downside, the pair may soon break the 1.2294 low and it could even break the 1.2280 level in the near term.


Also published on Medium.

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