EUR/USD Forecast – Can Euro Recover above 1.2340 Vs US Dollar?
- – The Euro declined after trading as high as 1.2395 against the US Dollar.
- – There is a major bullish trend line forming with support at 1.2320 on the hourly chart of EUR/USD.
- – China’s Trade Balance report for March 2018 was released by the General Administration of Customs of the People’s Republic of China.
- – The outcome was below the forecast of $27.21B as there was a trade deficit of $-4.98B.
China’s Trade Balance
Recently in China, the Trade Balance report for March 2018 was released by the General Administration of Customs of the People’s Republic of China. The market was looking for a trade surplus of $27.21B compared with the last surplus of $33.74B.
The actual result was below the forecast of $27.21B as there was a trade deficit of $-4.98B. Moreover, the last reading was revised from $33.74B to $33.75B. Imports of goods and services in March 2018 increased 14.4%, more than the forecast of 10%. Exports of goods and services in March 2018 decreased 2.7% compared with the forecast of +10%
The EUR/USD is currently under pressure, but it may hold the 1.2320 support and it could trade higher in the near term.
EUR/USD Technical Analysis
The Euro found a strong selling interest below the 1.2400 level against the US Dollar and started a downside move. The EUR/USD pair formed a top at 1.2395 and declined below 1.2360 to settle below the 100 hourly simple moving average.
The downside move was sharp and the pair traded as low as 1.2299. Later, it found support and traded above the 23.6% Fib retracement level of the last decline from the 1.2395 high to 1.2299 low.
Moreover, there is a major bullish trend line forming with support at 1.2320 on the hourly chart of EUR/USD. The pair is currently moving higher, but it is struggling to break the 100 hourly SMA and the 38.2% Fib retracement level of the last decline from the 1.2395 high to 1.2299 low.
The pair has to break the 1.2335 resistance and a bearish trend line at 1.2340 on the same chart to start an upside move. On the other hand, a break below the 1.2320 support could push EUR/USD below 1.2300.
Also published on Medium.
