EUR/USD Forecast – Euro Bearish Below 1.2180 Vs US Dollar

EUR/USD Forecast – Euro Bearish Below 1.2180 Vs US Dollar

  • – The Euro declined recently and broke a major support at 1.2200 against the US Dollar.
  • – There are two important bearish trend lines forming with resistance at 1.2160 and 1.2180 on the hourly chart of EUR/USD.
  • – Recently in the US, the Durable Goods Orders report for March 2018 was released by the US Census Bureau.
  • – The outcome was above the forecast of +1.6% as there was a rise in orders by +2.6%.

US Durable Goods Orders

Recently in the US, the Durable Goods Orders report for March 2018 was released by the US Census Bureau. The market was looking for a rise of 1.6% in orders in March 2018 compared with the last +3.1%.

 

The actual result was above the forecast of +1.6% as there was a rise in orders by +2.6%. Moreover, the last reading was also revised up from +3.1% to +3.5%. On the other hand, the Durable Goods Orders ex Transportation was flat in March 2018, whereas the market was looking for a rise of 0.5%.

 

The EUR/USD pair remained in a bearish zone and it seems like the pair may decline further below 1.2090 in the near term.

 

EUR/USD Technical Analysis

The Euro faced a lot of selling pressure recently against the US Dollar, which resulted in a decline below the 1.2200 support area. The EUR/USD pair declined sharply and broke the 1.2150 and 1.2120 support levels to settle well below the 100 hourly simple moving average.

 

EUR/USD Technical Analysis Euro US Dollar

 

The pair traded as low as 1.2095 and it is currently consolidating losses around the 1.2100 level. An initial resistance on the upside is near the 23.6% Fib retracement level of the last drop from the 1.2209 high to 1.2095 low.

 

Moreover, there are two important bearish trend lines forming with resistance at 1.2160 and 1.2180 on the hourly chart of EUR/USD. The first trend is close to the 50% Fib retracement level of the last drop from the 1.2209 high to 1.2095 low.

 

Therefore, a recovery towards the 1.2160 and 1.2180 resistance levels may face sellers in the near term. On the downside, a break below 1.2095 may call for more losses towards 1.2060.


Also published on Medium.

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