EUR/USD Forecast – Euro Is Likely To Recover Above 1.1420 Vs US Dollar

EUR/USD Forecast – Euro Is Likely To Recover Above 1.1420 Vs US Dollar

  • – The Euro recovered slightly after trading towards the 1.1300 level against the US Dollar.
  • – There is a short-term breakout pattern forming with resistance near 1.1405 on the hourly chart of EUR/USD.
  • – Recently in the US, the Housing Starts figure for July 2018 was released by the US Census Bureau, at the Department of Commerce.
  • – The outcome was below the forecast of 1.260M as the Housing Starts came in at 1.168M (MoM).

US Housing Starts

Recently in the US, the Housing Starts figure for July 2018 was released by the US Census Bureau, at the Department of Commerce. The market was looking for a change from the last reading of 1.173M to 1.260M compared with the previous month.

 

The actual result was below the forecast of 1.260M as the Housing Starts came in at 1.168M. Moreover, the last reading was revised to 1.158M. Looking the Building Permits, there was a rise from the last revised reading of 1.292M to 1.311M.

 

The EUR/USD pair started a decent recovery recently and it managed to move above the 1.1340 and 1.1350 resistance levels.

 

EUR/USD Technical Analysis

The Euro declined heavily during the past few days and traded below the 1.1450 support area against the US Dollar. The EUR/USD pair even traded below the 1.1380 and 1.1350 support levels to challenge the 1.1300 support.

 

EUR/USD Technical Analysis Euro US Dollar

 

The pair traded as low as 1.1300 and later started an upside correction. It gained traction and moved above the 1.1350 resistance and the 100 hourly simple moving average. However, it found resistance near 1.1400 and later dropped below the 38.2% Fib retracement level of the last wave from the 1.1300 low to 1.1408 high.

 

However, downsides were protected by the 1.1350 support and the 50% Fib retracement level of the last wave from the 1.1300 low to 1.1408 high. At the moment, it seems like there is a short-term breakout pattern forming with resistance near 1.1405 on the hourly chart of EUR/USD.

 

The pair is likely to gain momentum above 1.1400 for more gains in the near term. On the flip side, a downside break below 1.1350 could push the pair back in a bearish zone.


Also published on Medium.

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