EUR/USD Forecast — Euro Buy on Dips Near 1.2460 Vs US dollar

  • - The Euro is in a major uptrend and it recently tested the 1.2500 level against the US Dollar.
  • - There is a crucial ascending channel forming with support at 1.2460 on the hourly chart of EUR/USD.
  • - Recently in the US, the Institute for Supply Management (ISM) Manufacturing Index for Jan 2018 was released.
  • - The outcome was above the forecast of 58.8 as the index came in at 59.1.

US ISM Manufacturing Index

Recently in the US, the Institute for Supply Management (ISM) Manufacturing Index for Jan 2018 was released. The market was looking for a decrease in the index from the last reading of 59.7 to 58.8.

The actual result was above the forecast of 58.8 as the index came in at 59.1. The last reading was revised down from 59.7 to 59.3. Thus, the overall decline was 0.2. The report added that:

New Orders, Production, and Employment Continue Growing, Supplier Deliveries Slowing at Faster Rate, Backlog Growing Raw Materials Inventories Growing, Customers’ Inventories Too Low Prices Increasing at Faster Rate.

The EUR/USD pair is well supported above the 1.2450–60 levels and it may continue to move higher in the near term.

EUR/USD Technical Analysis

The Euro made a nice upside move and traded above the 1.2450 resistance level against the US Dollar. The EUR/USD pair even traded above the 1.2500 level and is currently placed well above the 100 hourly simple moving average.

EUR/USD Technical Analysis Euro US Dollar

The pair traded as high as 1.2522 before it started a downside correction. It is currently testing the 23.6% Fib retracement level of the last wave from the 1.2384 low to 1.2522 high. The current price action is positive as long as the pair is above 1.2450.

On the downside, there is a crucial ascending channel forming with support at 1.2460 on the hourly chart. The channel support is around the 50% Fib retracement level of the last wave from the 1.2384 low to 1.2522 high. Therefore, the 1.2450–60 area is a major support and it can be seen as a buy zone.

As long as the pair is above the 1.2450 level, dips remain supported. On the upside, an initial resistance is at 1.2500, followed by the 1.2520–30 resistance zone.


Originally published at — ForexGator.com.