EUR/USD Forecast – Euro To Dollar Faces Crucial Resistance Near 1.0940
- – The Euro managed to recover against the US Dollar, but the upside was capped near 1.0930-40.
- – On the downside, there is a bullish trend line with support at 1.0905 formed on the hourly chart.
- – Today in the Euro Zone, the German Unemployment Change for April 2017 published by the German Statistics Office posted a reading of -15K, better than the forecast of -12K.
German Unemployment Change
Today in Euro Zone, the German Unemployment Change for April 2017 was published by the German Statistics Office. The market was positioned for the German Unemployment to change by -12K in April 2017, compared with the last -30K.
However, the result was above the market forecast, as the German Unemployment Change came in at -15K. On the other hand, the last reading was revised down from -30K to -29K. The report added that the
“number of persons in employment rose by 156,000, or 0.4%, in March 2017 month on month, not least due to the mild weather. The increase on February 2017 was higher than the relevant average of the past five years (+129,000 people)”.
Overall, the result was positive, but the EURUSD was not impressed, suggesting that the pair may remain under pressure below 1.0940.
EUR/USD Technical Analysis
The Euro after finding bids near 1.0840-50 against the US Dollar started an upside move. The EURUSD pair slowly moved higher and traded above the 1.0900 and 1.0910 levels to register decent gains in the near term.
However, the upside move was protected by a monster resistance at 1.0940. There are a few bearish trend lines near 1.0930-40, acting as a hurdle for buyers. The pair is currently moving down, and trading below the 23.6% Fib retracement level of the last wave from the 1.0887 low to 1.0936 high.
On the downside, there is a bullish trend line with support at 1.0905 on the hourly chart waiting to act as support if the pair moves down. The same trend line also coincides with the 61.8% Fib retracement level of the last wave from the 1.0887 low to 1.0936 high and the 100 hourly simple moving average. As long as the pair is above 1.0905, it may rise once again towards 1.0940.
