EUR/USD Forecast — Euro Bearish Below 1.2330 Vs US Dollar
- - The Euro failed to move above the 1.2400 level and declined sharply against the US Dollar.
- - There was a break below a key bullish trend line with support at 1.2365 on the hourly chart of EUR/USD.
- - Recently in the US, the Net Long-Term TIC Flows report for Jan 2018 released by the US Department of Treasury.
- - The outcome was above the forecast of $35.9B as the Net Long-Term TIC Flows came in at $62.1B.
US Net Long-Term TIC Flows
Recently in the US, the Net Long-Term TIC Flows report for Jan 2018 released by the US Department of Treasury. The market was looking the Net Long-Term TIC Flows to be around $35.9B compared with last reading of $27.3B.
The actual result was above the forecast of $35.9B as the Net Long-Term TIC Flows came in at $62.1B. However, the last reading was revised down from $27.3B to $23.3B. Looking at the total Net TIC Flows, the market was expecting $43.1B, but it came in at $119.7B.
The EUR/USD pair seems to be in a bearish zone and it could decline further below 1.2300 in the near term.
EUR/USD Technical Analysis
The Euro was in a positive zone earlier this week and traded above the 1.2350 level against the US Dollar. The EUR/USD even traded a few pips above the 1.2400 level, but it could not gain upside momentum and declined.
The pair fell and traded below the 1.2380 and 1.2360 support level. There was also a break below a key bullish trend line with support at 1.2365 on the hourly chart of EUR/USD. The pair is now trading well below the 1.2350 level and the 100 hourly simple moving average.
A low was formed recently at 1.2294 and the pair is currently consolidating. An initial resistance is around the 23.6% Fib retracement level of the last decline from the 1.2383 high to 1.2294 low.
However, the most important resistance on the upside is near 1.2340, which was a support earlier. On the downside, a close below the 1.2300 level could ignite more losses back towards the 1.2250 level in the near term.
Originally published at — ForexGator.com.
