EUR/USD Forecast – Euro Could Correct lower Toward 1.1600 Vs US Dollar

EUR/USD Forecast – Euro Could Correct lower Toward 1.1600 Vs US Dollar

  • – The Euro traded above the 1.1730 level before correcting lower against the US Dollar.
  • – There was a break below an important bullish trend line with support at 1.1688 on the hourly chart of EUR/USD.
  • – Recently in the US, the Initial Jobless Claims figure for the week ending August 25, 2018 was released by the US Department of Labor.
  • – The outcome was better than the forecast of 214K as the initial jobless claims came in at 213K.

US Initial Jobless Claims

Recently in the US, the Initial Jobless Claims figure for the week ending August 25, 2018 was released by the US Department of Labor. The market was looking for a rise in claims from the last reading of 210K to 214K.

 

The actual result was better than the forecast of 214K as the initial jobless claims increased from the last reading of 210K to 213K, 1K less than the forecast. The report added that:

 

The advance number for seasonally adjusted insured unemployment during the week ending August 18 was 1,708,000, a decrease of 20,000 from the previous week’s revised level. The previous week’s level was revised up 1,000 from 1,727,000 to 1,728,000.

 

The EUR/USD pair started a downside correction below the 1.1700 level and it seems like the pair could extend the current correction towards the 1.1620 and 1.1600 levels.

 

EUR/USD Technical Analysis

The Euro traded higher this week and moved above the 1.1680 resistance area against the US Dollar. The EUR/USD pair even traded above the 1.1700 level and traded as high as 1.1733 before facing sellers.

 

EUR/USD Technical Analysis Euro Dollar

 

The pair started a downside correction and declined below the 1.1700 level. There was also a break below the 1.1680 level and the 100 hourly simple moving average. Moreover, the pair declined below the 50% Fib retracement level of the last wave from the 1.1594 low to 1.1733 high.

 

Additionally, there was a break below an important bullish trend line with support at 1.1688 on the hourly chart of EUR/USD. The pair tested the 1.1650 support and the 61.8% Fib retracement level of the last wave from the 1.1594 low to 1.1733 high.

 

It is currently consolidating losses and is facing sellers near the 1.1680 level and the 100 hourly SMA. It seems like the pair may continue to decline towards the 1.1600-1.1620 area as long as it is below the 1.1680 resistance.


Also published on Medium.

Tags: , , ,

Like what you've read?

Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

Previous Entry   Next Entry