EUR/USD Forecast — Euro Downside Pressure Increases Vs US Dollar

  • - The Euro is under a lot of pressure and is currently well below 1.1820 against the US Dollar.
  • - There is a declining channel forming with resistance at 1.1800 on the hourly chart of EUR/USD.
  • - Recently in China, the Trade Balance report for Nov 2017 was released by the General Administration of Customs of the People’s Republic of China.
  • - The outcome was above the forecast of $35.0B as there was a trade surplus of $40.21B.

China’s Trade Balance

Recently China, the Trade Balance report for Nov 2017 was released by the General Administration of Customs of the People’s Republic of China. The market was looking for a trade surplus of around $35.0B in Nov 2017.

The actual result was above the forecast of $35.0B as there was a trade surplus of $40.21B, which was also better than the last revised surplus of $38.19B. Exports of goods and services in Nov 2017 were up by 10.3%, more than the last +6.1%. Imports of goods and services in Nov 2017 were up by 15.6%, more than the last +15.9%.

The EUR/USD pair failed to take advantage and the risk sentiment is still favoring the greenback for more gains in the near term.

EUR/USD Technical Analysis

The Euro started a new downside leg after failing to settle above the 1.1900 and 1.1920 levels against the US Dollar. The EUR/USD pair moved down below the 1.1840 and 1.1820 support levels to settle below the 100 hourly simple moving average.

EUR/USD Technical Analysis Euro US Dollar

The pair recently traded as low as 1.1761 and it seems like it is following a declining channel with resistance at 1.1800 on the hourly chart. A minor correction is underway and the pair is heading towards the 23.6% Fib retracement level of the last drop from the 1.1814 high to 1.1761 low.

However, the most important resistance is around the 1.1800 level and the 50% Fib retracement level of the last drop from the 1.1814 high to 1.1761 low. It seems like a break above the channel resistance and 1.1820 won’t be easy for the Euro.

As long as the pair is below 1.1820, it remains in a downtrend towards the next support at 1.1720 in the near term.


Originally published at — ForexGator.com.