EUR/USD Forecast – Can Euro Break 1.1740 Vs US Dollar?

EUR/USD Forecast – Can Euro Break 1.1740 Vs US Dollar?

  • – The Euro jumped from the 1.1525 support area and moved above 1.1650 against the US Dollar.
  • – There is a short-term connecting bullish trend line forming with support at 1.1650 on the hourly chart of EUR/USD.
  • – Recently in the US, the Personal Income report for April 2018 was released by the Bureau of Economic Analysis, Department of Commerce.
  • – The outcome was around the market forecast as there was a rise of 0.3% in the personal income (MoM).

US Personal Income

Recently in the US, the Personal Income report for April 2018 was released by the Bureau of Economic Analysis, Department of Commerce. The market was looking for a rise of around 0.3% in the personal income in April 2018 compared with the previous month.

 

The actual result was around the market forecast as there was a rise of 0.3% in the personal income. Looking at the Personal spending, there was a rise of 0.6%, more than the forecast of 0.4% and above the previous revised reading of +0.5%.

 

The EUR/USD pair gained traction recently and moved above the 1.1650 resistance level with a positive bias.

 

EUR/USD Technical Analysis

The Euro declined sharply this past week and traded below the 1.1550 level against the US Dollar. The EUR/USD traded close to the 1.1500 level and a low was formed around 1.1520. Later, the pair formed a base and started a sharp upside move above 1.1550.

 

EUR/USD Technical Analysis Euro US Dollar

 

The pair gained bullish momentum and broke many resistances such as 1.1600 and 1.1650. It even traded above the 1.1700 level, but the upside move was capped by the 1.1725 resistance. It is currently correcting lower and already traded below the 50% Fib retracement level of the last wave from the 1.1593 low to 1.1725 high once.

 

However, the downside move was protected by the 1.1650 support and the 61.8% Fib retracement level of the last wave from the 1.1593 low to 1.1725 high. There is also a short-term connecting bullish trend line forming with support at 1.1650 on the hourly chart of EUR/USD.

 

Overall, the pair remains in a nice uptrend above 1.1650, but it has to break the 1.1725 and 1.1740 resistance levels to accelerate further higher.


Also published on Medium.

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