EUR/USD Forecast – Euro Remains Supported Above 1.2300 Vs US Dollar

EUR/USD Forecast – Euro Remains Supported Above 1.2300 Vs US Dollar

  • – The Euro declined recently, but it held the 1.2300 support level against the US Dollar.
  • – There is a short-term connecting bullish trend line forming with support at 1.2315 on the hourly chart of EUR/USD.
  • – Recently in the US, the Manufacturing Purchasing Managers Index (PMI) for March 2018 was released by the Markit Economics.
  • – The outcome was above the forecast of 55.5 as there was a rise in the PMI from 55.3 to 55.7 in March 2018.

US Manufacturing Purchasing Managers Index

Recently in the US, the Manufacturing Purchasing Managers Index (PMI) for March 2018 was released by the Markit Economics. The market was looking for a minor rise in the PMI from 55.3 to 55.5 in March 2018.

 

The actual result was above the forecast of 55.5 as there was a rise in the PMI from 55.3 to 55.7 in March 2018. On the other hand, the US Composite PMI Output Index was down from the last reading of 55.8 to 54.3.

 

The EUR/USD pair managed to hold a major support near 1.2300-1.2310 and it seems like it may rise in the short term.

 

EUR/USD Technical Analysis

The Euro started a downside correction after trading as high as 1.2388 against the US Dollar. The EUR/USD declined and broke the 1.2350 and 1.2320 support levels.

 

EUR/USD Technical Analysis Euro US Dollar

 

However, the downside move was protected by the 1.2300-10 support area and the 100 hourly simple moving average. The pair is currently moving higher and it has breached the 23.6% Fib retracement level of the last decline from the 1.2388 high to 1.2284 low.

 

On the downside, there is a short-term connecting bullish trend line forming with support at 1.2315 on the hourly chart. At the moment, the pair is struggling to break the 50% Fib retracement level of the last decline from the 1.2388 high to 1.2284 low at 1.2335.

 

A successful close above the 1.2335 and 1.2340 levels could open the doors for more gains in the near term. The next major upside resistance could at 1.2360, followed by the last swing high at 1.2388. On the downside, the 1.2310 and 1.2300 levels are important supports.


Also published on Medium.

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