EUR/USD Forecast – Can Euro Break This Vs US Dollar?
- – The Euro started an upside correction after trading as low as 1.1507 against the US Dollar.
- – There was a break above a major bearish trend line with resistance at 1.1550 on the hourly chart of EUR/USD.
- – Recently in the US, the Housing Price Index for April 2018 was released by the Federal Housing Finance Agency.
- – The outcome was below the market forecast of +0.3% as there was a rise of 0.1% in the HPI (MoM).
US Housing Price Index
Recently in the US, the Housing Price Index for April 2018 was released by the Federal Housing Finance Agency. The market was looking for a rise of around 0.3% in the Housing Price Index in April 2018, compared with the previous month.
The actual result was below the market forecast of +0.3% as there was a rise of 0.1% in the HPI. Moreover, the Philadelphia Fed Manufacturing Index for June 2018 was also released. It posted a decline from the last reading of 34.4 to 19.9.
The EUR/USD pair is currently correcting higher and it seems like it may perhaps move above the 1.1640 resistance zone in the near term.
EUR/USD Technical Analysis
The Euro declined heavily from well above the 1.1850 level against the US Dollar. The EUR/USD pair broke many supports on the way down such as 1.1640 and 1.1550 to settle below the 100 hourly simple moving average.
The pair traded close to the 1.1500 level and formed a low at 1.1507. Later, an upside correction was initiated and the pair moved above the 23.6% Fib retracement level of the last decline from the 1.1851 high to 1.1507 low.
More importantly, there was a break above a major bearish trend line with resistance at 1.1550 on the hourly chart of EUR/USD. The pair is currently trading above the 100 hourly SMA, but it is facing a major barrier near the 1.1640 level.
The 1.1640 level was a support earlier and now it coincides with the 38.2% Fib retracement level of the last decline from the 1.1851 high to 1.1507 low. Therefore, a break above the 1.1640 resistance may perhaps open the doors for more gains in the near term.
Also published on Medium.
