EUR/USD Forecast – Euro Eyeing Further Upsides Vs US Dollar

EUR/USD Forecast – Euro Eyeing Further Upsides Vs US Dollar

  • – The Euro traded higher this week and settled above the 1.1650 resistance against the US Dollar.
  • – There is a key contracting triangle in place with support at 1.1675 on the hourly chart of EUR/USD.
  • – Recently in the US, the Initial Jobless Claims figure for the week ending July 01, 2018 was released by the US Department of Labor.
  • – The outcome was below the market forecast of 225K as there was a rise in claims from the last revised reading of 228K to 231K.

US Initial Jobless Claims

Recently in the US, the Initial Jobless Claims figure for the week ending July 01, 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 225K as there was a rise in claims from the last revised reading of 228K to 231K. Looking at the 4-week moving average, there was an increase of 2,250 to 224,500 from the previous week’s revised average of 222,250.

 

The EUR/USD pair remained in a bullish zone and it seems like the pair may continue to trade higher above the 1.1700 level in the near term.

 

EUR/USD Technical Analysis

The Euro formed a decent support base below the 1.1620 level and moved higher against the US Dollar. The EUR/USD pair climbed above the 1.1650 and 1.1700 resistance levels to settle above the 100 hourly simple moving average.

 

EUR/USD Technical Analysis Euro US Dollar

 

The pair traded as high as 1.1719 before it started a downside correction. It declined and broke the 38.2% Fib retracement level of the last wave from the 1.1630 low to 1.1719 high. However, the decline was protected by the 1.1670-75 support area.

 

Moreover, the 50% Fib retracement level of the last wave from the 1.1630 low to 1.1719 high also acted as a support. At the moment, it seems like there is a key contracting triangle in place with support at 1.1675 on the hourly chart of EUR/USD.

 

As long as the pair is holding the 1.1675 support, it remains in a bullish zone and it could continue to move higher above the 1.1700 and 1.1720 levels.


Also published on Medium.

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