EUR/USD Forecast – Euro Recovering Higher Vs US Dollar

EUR/USD Forecast – Euro Recovering Higher Vs US Dollar

  • – The Euro bounced back after trading towards the 1.1525 support level against the US Dollar.
  • – There was a break above a key bearish trend line with resistance at 1.1595 on the hourly chart of EUR/USD.
  • – Recently in the US, the Initial Jobless Claims figure for the week ending June 23, 2018 was released by the US Department of Labor.
  • – The outcome was below the market forecast of 220K as there was a rise in claims from 218K to 227K.

US Initial Jobless Claims

Recently in the US, the Initial Jobless Claims figure for the week ending June 23, 2018 was released by the US Department of Labor. The market was looking for a rise in claims from the last reading of 218K to 220K.

 

The actual result was below the market forecast of 220K as there was a rise in claims from 218K to 227K. Looking at the 4-week moving average, there was an increase of 1K to 222,000 from the previous week’s unrevised average of 221,000.

 

The EUR/USD pair started a recovery today and it moved above a couple of important resistances near the 1.1600 level.

 

EUR/USD Technical Analysis

The Euro declined recently from the 1.1720 swing high and broke the 1.1600 support against the US Dollar. The EUR/USD pair even broke the 1.1550 support area and the 100 hourly simple moving average to test the 1.1525 support area.

 

EUR/USD Technical Analysis Euro US Dollar

 

The pair traded as low as 1.1526 and later it started a fresh upward correction. It bounced back and moved above the 50% Fib retracement level of the last decline from the 1.1720 high to 1.1526 low. Moreover, there was a break above a key bearish trend line with resistance at 1.1595 on the hourly chart of EUR/USD.

 

The pair is now trading above the 1.1620 level and is currently facing hurdles near the 1.1650 level and the 61.8% Fib retracement level of the last decline from the 1.1720 high to 1.1526 low.

 

In the short-term, there could be a downside correction, but the pair is likely to find support around the 1.1620, 1.1600 and 1.1580 levels. Resistances on the upside are at 1.1650 and 1.1675.


Also published on Medium.

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