EUR/USD Forecast – Euro Is Near Make or Break Levels Vs US Dollar
- – The Euro recovered recently and moved above the 1.1600 resistance against the US Dollar.
- – There are two major bearish trend lines formed with resistance at 1.1650 on the hourly chart of EUR/USD.
- – Recently in the US, the Services Purchasing Managers Index (PMI) for August 2018 was released by Markit Economics.
- – The outcome was below the market forecast of 55.2 as there was a decline in the PMI from 55.2 to 54.8.
US Services PMI
Recently in the US, the Services Purchasing Managers Index (PMI) for August 2018 was released by Markit Economics. The market was looking for no change in the PMI from 55.2 in August 2018.
The actual result was below the market forecast of 55.2 as there was a decline in the PMI from 55.2 to 54.8. Moreover, both output and new business expand at softer rates in August 2018. The report added that:
The latest survey data signalled a weaker rise in business activity across the U.S. service sector. Output growth softened to a four-month low and dipped below the long-run series trend. The rate of new business growth softened to an eight-month low, despite remaining strong overall.
The EUR/USD pair is currently placed nicely above the 1.1600 support, but it is facing a tough resistance near the 1.1650 zone.
EUR/USD Technical Analysis
The Euro found a decent support near the 1.1540 level and recovered against the US Dollar. The EUR/USD pair traded above the 1.1580 and 1.1600 resistance levels plus settled above the 100 hourly simple moving average.
However, the upside move was capped by the 1.1650-60 resistance area. Moreover, there are two major bearish trend lines formed with resistance at 1.1650 on the hourly chart of EUR/USD. The pair corrected lower and traded below the 1.1630 level.
There was also a break below the 23.6% Fib retracement level of the last wave from the 1.1542 low to 1.1658 high. However, the pair is finding bids near the 1.1600 level and the 100 hourly SMA.
Additionally, the 50% Fib retracement level of the last wave from the 1.1542 low to 1.1658 high is also at 1.1600. Therefore, the 1.1600 support could play a major role in the near term. Overall, it seems like the pair is preparing for the next move either above 1.1650 or below 1.1600. Above 1.1650, it could test 1.1700 or below 1.1600, it may test 1.1550.
Also published on Medium.
