EUR/USD Forecast – Euro Remains Above 1.0780 Support Vs Dollar

EUR/USD Forecast – Euro Remains Above 1.0780 Support Vs Dollar

  • – The Euro managed to pop higher against the US Dollar and moved towards 1.0815.
  • – There is a bullish trend line with support at 1.0780 formed on the hourly chart of EUR/USD.
  • – The Euro Zone Current Account for Jan 2017 released by European Central Bank posted a trade surplus of €24.1B, compared with the forecast of €29.3B.

 

Euro Zone Current Account

Today in the Euro Zone, the Current Account for Jan 2017 was released by European Central Bank. The market was expecting the net flow of current transactions, including goods, services, and interest payments to post a surplus of €29.3B in Jan 2017, compared with the previous €31.0B.

 

The outcome a bit lower than the forecast, as the Current Account trade surplus in Jan 2017 was €24.1B. The last reading was revised to €30.8B. The Current Account (non-seasonally adjusted) posted a trade surplus of €2.5B in Jan 2017. The report mentioned the result was “was due to increases in the surpluses for goods (from €346.8 billion to €366.3 billion), primary income (from €42.5 billion to €59.3 billion) and services (from €58.6 billion to €68.5 billion)”.

 

Overall, there is a chance of a minor dip in the Euro in the short term, but the EUR/USD pair likely to hold the 1.0780-1.0750 support area.

 

EUR/USD Technical Analysis

The Euro managed to move above the 1.0760 resistance and the 100 simple moving average (hourly) recently against the US Dollar. The EUR/USD pair traded as high as 1.0818 where it found resistance in the form of a connecting bearish trend line on the hourly chart.

 

EUR/USD Technical Analysis Euro Dollar

 

The pair is currently moving lower, but finding bids near the 23.6% Fib retracement level of the last wave from the 1.07188 low to 1.0818 high. However, the most important support is near a bullish trend line at 1.0780 on the hourly chart.

 

The same level also coincides with the 38.2% Fib retracement level of the last wave from the 1.07188 low to 1.0818 high. So, if the pair dips from the current levels, it is likely to find buyers near 1.0780, 1.0760, and the 100 simple moving average (hourly).

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