- – The Euro declined sharply this week and traded below 1.1850 against the US Dollar.
- – There is a key contracting triangle forming with support at 1.1790 on the hourly chart of EUR/USD.
- – Recently in the US, the Philadelphia Fed Survey Index was released for May 2018.
- – The outcome was better than the forecast of 21.0 as there was a rise in the index to 34.4.
US Philadelphia Fed Survey
Recently in the US, the Philadelphia Fed Survey Index was released for May 2018. The market was looking for a minor decline from the last reading of 23.2 to 21.0 in May 2018.
The actual result was better than the forecast of 21.0 as there was a rise in the index to 34.4. There were more than 43% of the manufacturers who reported gains in overall activity in May 2018. The report added:
Both current new orders and shipments indexes improved this month, increasing 22 points and 2 points, respectively. Both the delivery times and unfilled orders indexes remained positive, suggesting longer delivery times and increases in unfilled orders.
The EUR/USD pair is currently consolidating around the 1.1800 level and it seems like it may correct a few pips higher in the near term.
EUR/USD Technical Analysis
The Euro faced a lot of selling interest this week and declined below 1.1900 against the US Dollar. The EUR/USD pair tumbled and even broke the 1.1850 support level to settle below the 100 hourly simple moving average.
There was even a spike below the 1.1800 support, and a low was formed at 1.1763. Later, the pair started an upside correction and moved above the 38.2% Fib retracement level of the last drop from the 1.1875 high to 1.1763 low.
However, the upside move was capped by the 1.1830 resistance and the 50% Fib retracement level of the last drop from the 1.1875 high to 1.1763 low. There was a minor downside reaction, and at the moment, the pair is consolidating around 1.1800. More importantly, there is a key contracting triangle forming with support at 1.1790 on the hourly chart.
In the short term, it seems like the pair may break the 1.1810 resistance and correct higher. The next hurdles on the upside for buyers are near 1.1830, 1.1840 and 1.1850.
Also published on Medium.Tags: EUR/USD, EUR/USD Technical Analysis, Euro, US Dollar