EUR/USD Forecast – Euro Turned Bearish Below 1.1725 Vs US Dollar
- – The Euro started a downside move and broke a major support at 1.1725 against the US Dollar.
- – There is a key bearish trend line in place with resistance at 1.1710 on the hourly chart of EUR/USD.
- – Recently in the US, the Durable Goods Orders report for August 2018 was released by the US Census Bureau.
- – The outcome was above the market forecast of 2.0% as there was a rise in orders by 4.5%.
US Durable Goods Orders
Recently in the US, the Durable Goods Orders report for August 2018 was released by the US Census Bureau. The market was looking for an increase of 2.0% in orders in August 2018.
The actual result was above the market forecast of 2.0% as there was a rise in orders by 4.5%. Looking at the Durable Goods Orders ex transportation, there was a rise of 0.1% in orders, less than the forecast of +0.5%.
The EUR/USD pair traded towards the 1.1640 support area and it is currently correcting higher towards the 1.1660 resistance area.
EUR/USD Technical Analysis
The Euro failed to move above the 1.1800 resistance area against the US Dollar. The EUR/USD pair started a downside move, broke the 1.1780 and 1.1750 support levels, and settled below the 100 hourly simple moving average.
The pair even broke the 1.1725 and 1.1700 support levels and traded towards 1.1640. A low was formed at 1.1632 and the pair is currently correcting higher. An initial resistance is near the 23.6% Fib retracement level of the last decline from the 1.1756 high to 1.1632 low.
Above 1.1660, there are many hurdles near the 1.1700 level. There is also a key bearish trend line in place with resistance at 1.1710 on the hourly chart of EUR/USD. An intermediate resistance is 1.1694 and the 50% Fib retracement level of the last decline from the 1.1756 high to 1.1632 low.
Therefore, if the pair corrects higher from the current levels, it is likely to face a strong selling interest near the 1.1700 handle. On the downside, a break below the recent low could push EUR/USD towards the 1.1600 level in the near term.
Also published on Medium.
