EUR/USD Forecast – Euro Testing Crucial Support Vs US Dollar
- – The Euro struggled to move above the 1.1820-30 levels against the US Dollar and moved down.
- – There is a monster support confluence area forming near two bullish trend lines at 1.1775 on the hourly chart of EUR/USD.
- – Today in the Euro Zone, the German business sentiment index for August 2017 was released by the CESifo Group.
- – The outcome was above the forecast, as there was a minor decline from 116.0 to 115.9.
German Business Climate Index
Today in the Euro Zone, the German business sentiment index for August 2017 was released by the CESifo Group. The market was positioned for a decline in the index from the last reading of 116.0 to 115.5.
The actual result was above the forecast, as there was a minor decline from 116.0 to 115.9. On the other hand, the German IFO Expectations in August 2017 rose from the last reading of 107.3 to 107.9. However, the German IFO Current Assessment posted a decline from the last revised reading of 125.5 to 124.6.
Overall, the EUR/USD pair is likely to hold the 1.1775 support area and might trade in a range in the short term.
EUR/USD Technical Analysis
The Euro remains in a decent uptrend above the 1.1750 support area against the US Dollar. The EUR/USD pair recently made a couple of attempts to settle above the 1.1820-30 levels, but it failed to gains momentum to trade towards 1.1850.
A bearish trend line on the hourly chart at 1.1820 is preventing gains in the pair and pushed it down on a couple of occasions. On the downside, there is a monster support confluence area forming near two bullish trend lines at 1.1775 on the hourly chart of EUR/USD.
The pair recently tested the 61.8% Fib retracement level of the last wave from the 1.1738 low to 1.1823 high. The trend lines support near 1.1775-80 is holding very well and preventing declines in the near term.
As long as the pair is above 1.1770 and the 100 hourly simple moving average, it is likely to continue trading higher.
