EUR/USD Forecast — Euro Likely to Recover Further Vs US Dollar
- - The Euro found support near 1.1820 after declining heavily against the US Dollar.
- - There was a break above a key bearish trend line with resistance at 1.1870 on the hourly chart of EUR/USD.
- - Recently in the US, the Initial Jobless Claims figure for the week ending May 05, 2018 was released by the US Department of Labor.
- - The outcome was better than the forecast of 218K as there was no change in claims from 211K.
US Initial Jobless Claims
Recently in the US, the Initial Jobless Claims figure for the week ending May 05, 2018 was released by the US Department of Labor. The market was looking for a rise in claims from the last reading of 211K to 218K.
The actual result was better than the forecast of 218K as there was no change in claims from 211K. Looking at the Counting Jobless Claims, it came in at 1.790M, more than the forecast of 1.778M, and also more than the last 1.760M.
The EUR/USD pair is currently moving higher and it seems like it may recover further above 1.1920 in the near term.
EUR/USD Technical Analysis
The Euro declined heavily during the past few days from well above 1.2000 against the US Dollar. The EUR/USD pair traded below a few support levels such as 1.1950 and 1.1900, and it even settled below the 100 hourly simple moving average.
The pair found support near the 1.1820 level and started an upside move. It broke the 1.1850 resistance level and even cleared a key bearish trend line with resistance at 1.1870 on the hourly chart.
The upside move was strong as the pair even traded above the 1.1900 level and the 100 hourly SMA. It traded as high as 1.1947 before correcting lower. However, there is a major support near the 1.1900 level and the 38.2% Fib retracement level of the last wave from the 1.1822 low to 1.1947 high.
There can be a minor downside reaction in EUR/USD in the short term but the pair remains supported above 1.1880–1.1900. On the upside, a break above 1.1920 and 1.1940 is needed for more gains towards 1.2000 in the near term.
Originally published at ForexGator.com.