EUR/USD Forecast – Can Euro Regain Traction Vs US Dollar?

EUR/USD Forecast – Can Euro Regain Traction Vs US Dollar?

  • – The Euro traded as high as 1.2476 this week before moving lower against the US Dollar.
  • – There is a major connecting bullish trend line forming with support at 1.2290 on the 4-hours chart of EUR/USD.
  • – Recently in the US, the Personal Income report for Feb 2018 was released by the Bureau of Economic Analysis, Department of Commerce.
  • – The outcome was around the forecast as there was a rise in the personal income by 0.4%.

US Personal Income

Recently in the US, the Personal Income report for Feb 2018 was released by the Bureau of Economic Analysis, Department of Commerce. The market was looking for an increase of around 0.4% in income compared with the previous month.

 

The actual result was around the forecast as there was a rise in the personal income by 0.4%. This was also in line with the last reading of 0.4%. Looking at the personal spending, there was a rise of 0.2% in Feb 2018, which was similar to the forecast and the last reading.

 

The EUR/USD pair may correct lower in the short term, but the 1.2290-1.2300 area is likely to hold losses.

 

EUR/USD Technical Analysis

The Euro traded above the 1.2400 earlier this week against the US Dollar. The EUR/USD even traded above the 1.2450 level and formed a high near 1.2476 before starting a downside correction.

 

EUR/USD Technical Analysis Euro US Dollar

 

The pair moved down and broke the 1.2450 support. It also declined below the 50% Fib retracement level of the last wave from the 1.2239 low to 1.2476 high. However, there are many supports on the downside such as 1.2300.

 

There is also a major connecting bullish trend line forming with support at 1.2290 on the 4-hours chart of EUR/USD. Above the trend line, the 76.4% Fib retracement level of the last wave from the 1.2239 low to 1.2476 high is at 1.2325.

 

On the upside, a break above the 1.2450 and 1.2470 levels is needed for a push above the 1.2500 level in the near term.


Also published on Medium.

Tags: , , ,

Like what you've read?

Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

Previous Entry   Next Entry