EUR/USD Forecast — Can Euro Break This Vs US Dollar?
- - The Euro is under pressure and is currently trading below the 1.1700 support against the US Dollar.
- - There is a key bearish trend line formed with resistance at 1.1660 on the hourly chart of EUR/USD.
- - Recently in the US, the Philadelphia Fed Manufacturing Index for July 2018 was by the Federal Reserve Bank of Philadelphia.
- - The outcome was above the market forecast of 22.0 as there was a rise in the index to 25.7.
US Philadelphia Fed Manufacturing Index
Recently in the US, the Philadelphia Fed Manufacturing Index for July 2018 was by the Federal Reserve Bank of Philadelphia. The market was looking for a rise from the last reading of 19.9 to 22.0.
The actual result was above the market forecast of 22.0 as there was a rise in the index to 25.7, which was well above the last reading of 19.9. The report added:
All the broad indicators remained positive, with the general activity and new orders indexes improving this month. The survey’s price indexes suggest widespread increases for purchased inputs, and more firms reported price increases for their own manufactured goods.
The EUR/USD pair remained in a bearish zone and is currently attempting a recovery above the 1.1640 level.
EUR/USD Technical Analysis
The Euro declined heavily this week and traded below the 1.1700 support area against the US Dollar. The EUR/USD pair even broke the 1.1650 and 1.1600 support levels to settle below the 100 hourly simple moving average.
The pair traded as low as 1.1574 before starting an upside correction. It moved above the 23.6% Fib retracement level of the last drop from the 1.1744 high to 1.1574 low. However, there are many hurdles for buyers near the 1.1660–70 zone.
There is also a key bearish trend line formed with resistance at 1.1660 on the hourly chart of EUR/USD. The trend line is positioned with the 100 hourly SMA and the 50% Fib retracement level of the last drop from the 1.1744 high to 1.1574 low.
Therefore, a proper close above the 1.1660–70 resistance area is needed for more gains in EUR/USD. If the pair fails to move above this, it could decline back towards the 1.1600 level in the near term.
Originally published at ForexGator.com.