EUR/USD Forecast — Euro Could Decline Further Vs US dollar

  • - The Euro started a downside wave and moved below the 1.2280 support against the US Dollar.
  • - There is a major bearish trend line forming with current resistance at 1.2290 on the hourly chart of EUR/USD.
  • - Recently in China, the Consumer Price Index for Jan 2018 was released by the National Bureau of Statistics of China.
  • - The outcome was below the forecast of 0.7% as the index increased by 0.6% in Jan 2018 (MoM).

Chinese Consumer Price Index

Recently in China, the Consumer Price Index for Jan 2018 was released by the National Bureau of Statistics of China. The market was looking for a rise of 0.6% in the index in Jan 2018 compared with the previous month.

The actual result was below the forecast of 0.7% as the index increased by 0.6% in Jan 2018. In terms of the yearly change, the Chinese CPI rose 1.5%, which was in line with the forecast, but it was below the last 1.8%.

The EUR/USD pair is currently under pressure, and it seems like the pair could even break the 1.2200 support for more declines.

EUR/USD Technical Analysis

The Euro after trading above the 1.2500 level found sellers against the US Dollar. The EUR/USD pair started a downside move, broke the 1.2400 and 1.2320 support levels and settled below the 100 hourly simple moving average.

EUR/USD Technical Analysis Euro US Dollar

The pair traded as low as 1.2211 low recently and is currently correcting higher. It already tested the 38.2% Fib retracement level of the last decline from the 1.2405 high to 1.2217 low. However, there was no follow through and the pair is now back below the 1.2270 support.

On the upside, there is a major bearish trend line forming with current resistance at 1.2290 on the hourly chart. The 50% Fib retracement level of the last decline from the 1.2405 high to 1.2217 low is near the trend line resistance.

Therefore, a break above the 1.2290 and 1.2300 levels won’t be easy. If EUR/USD fails to move higher, it could soon break the 1.2200 support area and decline further may be towards the 1.2150 level.


Originally published at — ForexGator.com.

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