EUR/USD Forecast – Euro Could Extend Losses Vs US Dollar

EUR/USD Forecast – Euro Could Extend Losses Vs US Dollar

  • – The Euro remained in a bearish zone below the 1.1700 level against the US Dollar.
  • – There is a major bearish trend line formed with resistance at 1.1672 on the hourly chart of EUR/USD.
  • – Recently in the US, the Initial Jobless Claims figure for the week ending July 07, 2018 was released by the US Department of Labor.
  • – The outcome was above the market forecast of 225K as there was a decline in claims from the last revised reading of 232K to 214K.

US Initial Jobless Claims

Recently in the US, the Initial Jobless Claims figure for the week ending July 07, 2018 was released by the US Department of Labor. The market was looking for a decline in claims from the last reading of 231K to 225K.

 

The actual result was above the market forecast of 225K as there was a decline in claims from the last revised reading of 232K to 214K. Considering at the 4-week moving average, there was a decrease of 1,750 to 223,000 from the previous week’s revised average of 224,750.

 

The EUR/USD pair was under pressure and it seems like there are chances of more losses towards the 1.1620 level in the near term.

 

EUR/USD Technical Analysis

The Euro started a major downside move from well above the 1.1740 level against the US Dollar. The EUR/USD pair declined below the 1.1700 and 1.1675 support levels to settle well below the 100 hourly simple moving average.

 

EUR/USD Technical Analysis Euro US Dollar

 

The pair traded as low as 1.1649 and later it started an upside correction. It moved above the 23.6% Fib retracement level of the last decline from the 1.1758 high to 1.1649 low. However, the upside move was capped by the 1.1700 resistance.

 

Moreover, the 38.2% Fib retracement level of the last decline from the 1.1758 high to 1.1649 low also acted as a resistance. Additionally, there is a major bearish trend line formed with resistance at 1.1672 on the hourly chart of EUR/USD.

 

Therefore, if the pair fails to move above the 1.1675 and 1.1700 resistance levels, there is a risk of a downside break towards the 1.1620 support in the near term. Below 1.1620, the next supports sits at 1.1600.


Also published on Medium.

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