EUR/USD Forecast – Euro Tumbles Below Key Support Vs US Dollar
- – The Euro fell sharply and broke a key support near the 1.1630 level against the US Dollar.
- – There is a crucial bearish trend line formed with resistance at 1.1615 on the hourly chart of EUR/USD.
- – Recently in the US, the Factory orders report for June 2018 was released by the US Census Bureau.
- – The outcome was in line with the forecast as there was a rise of 0.7% in orders in June 2018 (MoM).
US Factory Orders
Recently in the US, the Factory orders report for June 2018 was released by the US Census Bureau. The market was looking for a rise of 0.7% in the factory orders in June 2018 compared with the previous month.
The actual result was in line with the forecast as there was a rise of 0.7% in orders in June 2018. However, the 0.7% rise was a lot more than the last increase of 0.4%.
The EUR/USD pair is under pressure below 1.1630 and 1.1615, and today’s US NFP report could trigger more losses in the near term.
EUR/USD Technical Analysis
The Euro failed to hold gains above the 1.1720 level against the US Dollar. The EUR/USD pair started a major downside move, broke the 1.1700, 1.1650 and 1.1630 support levels, and settled below the 100 hourly simple moving average.
The decline was such that the pair even broke the 1.1600 support and traded as low as 1.1581. It is currently consolidating with an initial resistance near the 23.6% Fib retracement level of the last decline from the 1.1667 high to 1.1581 low.
There is also a crucial bearish trend line formed with resistance at 1.1615 on the hourly chart of EUR/USD. The trend line coincides with the 38.2% Fib retracement level of the last decline from the 1.1667 high to 1.1581 low.
A break and close above the 1.1615 is needed for a larger upward correction toward 1.1630 and 1.1640 in the near term. On the other hand, 1.1580 is an initial support. Below this, the pair is likely to accelerate declines towards the 1.1550 level.
Also published on Medium.
