EUR/USD Forecast – Euro Moved Into Bearish Zone Vs US Dollar
- – The Euro started a downside move and traded below 1.2360 support against the US Dollar.
- – There was a break below a key bullish trend line at 1.2355 on the hourly chart of EUR/USD.
- – Recently in the US, the Philadelphia Fed Survey for April 2018 was released by the Federal Reserve Bank of Philadelphia.
- – The outcome was below the forecast of 20.1 as there was a rise in the index from 22.3 to 23.2.
Philadelphia Fed Survey
Recently in the US, the Philadelphia Fed Survey for April 2018 was released by the Federal Reserve Bank of Philadelphia. The market was looking for a decline in the index from the last reading of 22.3 to 20.1 in April 2018.
The actual result was below the forecast of 20.1 as there was a rise in the index from 22.3 to 23.2. This means that there could be continued growth for the region’s manufacturing sector. The report added that:
Nearly 37 percent of the manufacturers reported increases in overall activity this month, while 14 percent reported decreases. The indexes for current new orders and shipments remained positive but fell 17 points and 9 points, respectively.
The EUR/USD moved down and broke a major support area near 1.2360 to move into a bearish zone in the short term.
EUR/USD Technical Analysis
The Euro traded nicely above the 1.2350 level this week against the US Dollar until it found sellers around the 1.2400 level. The EUR/USD pair started a downside move, broke the 1.2360 support level, and settled below the 100 hourly simple moving average.
During the downside move, there was a break below a key bullish trend line at 1.2355 on the hourly chart of EUR/USD. The pair even traded below the 1.2340 level and moved to a new intraday low at 1.2329.
It is currently consolidating losses above the 1.2330 level and is facing resistance near the 23.6% Fib retracement level of the last decline from the 1.2399 high to 1.2329 low. To the topside, the broken support at 1.2360 and the 100 hourly SMA are likely to act as major hurdles for buyers.
On the downside, a break below the 1.2330 level could open the doors for further losses toward the 1.2300 level in the near term.
Also published on Medium.
