EUR/USD Forecast – Can Euro Hold This Vs US Dollar?
- – The Euro likely made a short-term top near 1.1878 against the US Dollar.
- – There was a break below a connecting bullish trend line at 1.1850 on the hourly chart of EUR/USD.
- – Recently in the Euro Zone, the German consumer price index for Sep 2017 was released by the Statistisches Bundesamt Deutschland.
- – The outcome was in line with the forecast, as there was a rise in the CPI by 0.1% (MoM).
German CPI
Recently in the Euro Zone, the German consumer price index for Sep 2017 was released by the Statistisches Bundesamt Deutschland. The market was positioned for a rise in the CPI by 0.1% compared with the previous month.
The actual result was in line with the forecast, as there was a rise in the CPI by 0.1%. Looking at the yearly change, the market was looking for a rise of 1.8% in the CPI, and the actual was similar to the forecast and the last increase of 1.8%. The report added:
Food prices in September 2017 rose 3.6% year on year, their increase being even larger than that of energy prices. In September 2017, above all edible fats and oils (+34.2%) were more expensive than a year earlier.
The result was neutral, but might hold heavy losses in EUR/USD below the 1.1800 support in the near term.
EUR/USD Technical Analysis
The Euro slowly and steadily moved higher and traded above 1.1800 against the US Dollar. The EUR/USD pair even broke the 1.1840-1.1850 resistance before forming a short-term high at 1.1878.
The pair is currently correcting lower and already moved below the 23.6% Fib retracement level of the last wave from the 1.1719 low to 1.1878 high. During the downside move, there was a break below a connecting bullish trend line at 1.1850 on the hourly chart.
The pair is currently trading near another bullish trend line with support at 1.1840 on the same chart. If sellers succeed in breaking the second bullish trend line, there is a chance of a move towards the 38.2% Fib retracement level of the last wave from the 1.1719 low to 1.1878 high at 1.1817.
Overall, the pair remains supported for more gains as long as there is no close below the 1.1800 support area.
