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  • EUR/USD Forecast – Euro Likely To Break Down Vs Dollar

    EUR/USD Forecast – Euro Likely To Break Down Vs Dollar

    • – There Euro was seen struggling to clear a major resistance near 1.0630 against the US Dollar.
    • – The EUR/USD pair is currently attempting a break below a crucial bullish trend line at 1.0585 on the hourly chart.
    • – The German Factory orders released by the Deutsche Bundesbank posted a decline of 7.4% in Jan 2017 (MoM), compared with the -2.7% forecast.

     

    German Factory Orders

    Today in the Euro Zone, the German Factory orders for Jan 2017 was released by the Deutsche Bundesbank. The market was expecting the shipments, inventories, and new and unfilled orders to decline by around 2.7% in Jan 2017, compared with the previous month.

     

    The outcome was well below the forecast, as the German Factory orders posted a decline of 7.4% in Jan 2017. In terms of the yearly change, there was a decrease of 0.8% in Jan 2017, which was a lot lower compared with the last increase of 8% (revised). In Italy today, the Producer Price Index for Jan 2017 (MoM) was released by the National Institute of Statistics. The result was around the forecast, as the Producer Price Index posted a rise of 1% in Jan 2017, compared with the previous month.

     

    Overall, the Euro has hardly any reason to remain supported, which means the EUR/USD pair could trade towards 1.0550 in the short term.

     

    EUR/USD Technical Analysis

    There was a rise in the Euro towards 1.0630-1.0640 against the US Dollar where it found resistance. The stated resistance near 1.0630 acted as a barrier on many occasions. It prevented gains once again in EUR/USD and pushed the pair back below 1.0600.

     

    EUR/USD Technical Analysis Euro US Dollar

     

    The pair also moved below the 23.6% Fib retracement level of the last wave from the 1.0494 low to 1.0639 high. At the moment, it is attempting a break below a crucial bullish trend line at 1.0585 on the hourly chart.

     

    If there is a close below the trend line support or 1.0580, there is a chance of a move towards 1.0550. The pair may even test the 61.8% Fib retracement level of the last wave from the 1.0494 low to 1.0639 high or the 100 hourly simple moving average around 1.0550. Overall, the pair remains at a risk of a breakdown in the near term.

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  • EUR/GBP Forecast – Can Euro Retain Bullish Momentum?

    EUR/GBP Forecast – Can Euro Retain Bullish Momentum?

    • – The Euro gained bullish momentum recently against the British Pound and moved above the 0.8580 resistance.
    • – There was a break above a bearish trend line on the 4-hours chart at 0.8580 in EURGBP.
    • – Today, the German Factory orders released by the Deutsche Bundesbank posted an increase of 5.2% in Dec 2016, more than the forecast of 0.5%.

     

    German Factory Orders

    Today, the FX market was slow, but there were moves in the Euro, especially against the British Pound. On the fundamental front, the German Factory orders figure was released by the Deutsche Bundesbank. The market was aligned for an increase of 0.2% in the shipments, inventories, and new and unfilled orders in Dec 2016, compared with the previous month.

     

    However, the result was better, as there was a rise of 5.2% in Dec 2016. In terms of the yearly change, there was a rise of 8.1% in in Dec 2016, compared with Dec 2015. The report published added that in “December 2016, domestic orders increased by 6.7% and foreign orders by 3.9% on the previous month. New orders from the euro area were up 10.0% on the previous month, new orders from other countries remained unchanged compared to November 2016”.

     

    Overall, the result was positive, which might help the EUR/GBP pair to remain supported above the 0.8600-0.8580 levels.

     

    EUR/GBP Technical Analysis

    The Euro this past week struggled against the British Pound and tumbled towards the 0.8470 support area. Later, the EUR/GBP pair started a recovery, and moved above a couple of important resistance levels like 0.8500, 0.8550, 0.8580 and 0.8600.

     

    EUR/GBP Technical Analysis Euro Pound

     

    The pair also managed to break a bearish trend line on the 4-hours chart at 0.8580, which opened the doors for more gains. Furthermore, the pair broke the 100 simple moving average on the 4-hour chart, which is currently acting as a support.

     

    The pair during the upside traded as high as 0.8644, which was just below the 50% Fib retracement level of the last drop from the 0.8851 high to 0.8468 low. So, there is a chance of a minor dip in EUR/GBP before the pair resumes its uptrend. On the downside, the 100 SMA, 0.8600 and 0.8580 levels may act as a support in the near term.

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