EUR/USD Forecast – Euro Remains Supported On Dips Vs US Dollar
- – The Euro jumped higher recently and broke the 1.1640 and 1.1650 resistances against the US Dollar.
- – There is a major bullish trend line in place with support at 1.1650 on the hourly chart of EUR/USD.
- – Recently in the US, the Initial Jobless Claims report for the week ending Sep 8, 2018 was released by the US Department of Labor.
- – The outcome was above the market forecast of 210K as there was a decline in claims to 204K.
US Initial Jobless Claims
Recently in the US, the Initial Jobless Claims report for the week ending Sep 8, 2018 was released by the US Department of Labor. The market was looking for a minor rise from the last reading of 203K to 210K.
The actual result was above the market forecast of 210K as there was a decline in claims to 204K. However, the last reading was revised up from 203K to 205K. The report added that:
The advance number for seasonally adjusted insured unemployment during the week ending September 1 was 1,696,000, a decrease of 15,000 from the previous week’s revised level.
The EUR/USD pair remained in a nice uptrend and it recently cleared a couple of hurdles near 1.1650 to move into a bullish zone.
EUR/USD Technical Analysis
The Euro formed a solid support near the 1.1560 level and started a nice upward move against the US Dollar. The EUR/USD pair climbed higher, broke the 1.1620 and 1.1650 resistances, and also settled above the 100 hourly simple moving average.
The upside move was strong as the pair even broke the 1.1680 resistance and traded as high as 1.1700. At the moment, the pair is consolidating gains above the 1.1680 level. An initial support is near the 23.6% Fib retracement level of the last wave from the 1.1606 low to 1.1700 high.
Below the 1.1675-80 support area, the next major support is near the 1.1650 zone, which was a resistance earlier. The 50% Fib retracement level of the last wave from the 1.1606 low to 1.1700 high is also around 1.1654.
Therefore, any dips from the current levels towards the 1.1650 level are likely to find a strong buying interest. On the upside, a break above 1.1700 could push EUR/USD towards 1.1740.
Also published on Medium.
