EUR/USD Forecast — Euro Remains in Downtrend Below 1.2280 Vs US Dollar
- - The Euro started a downside move from the 1.2345 resistance against the US Dollar.
- - There is a crucial bearish trend line forming with resistance near 1.2275 on the hourly chart of EUR/USD.
- - Recently in the US, the Trade Balance report for Feb 2018 was released by the Bureau of Economic Analysis and the U.S. Census Bureau.
- - The outcome was below the forecast of $-56.8B as there was a trade deficit of $-57.6B.
US Personal Income
Recently in the US, the Trade Balance report for Feb 2018 was released by the Bureau of Economic Analysis and the U.S. Census Bureau. The market was looking for a trade deficit of $-56.8B similar to the last reading.
The actual result was below the forecast of $-56.8B as there was a trade deficit of $-57.6B. Moreover, the last reading was revised up from $-56.6B to $-56.7B. Overall, the result was neutral and did not impact the USD.
The EUR/USD pair remains in a downtrend and it seems like the pair may continue to decline as long as it is below 1.2275.
EUR/USD Technical Analysis
The Euro found sellers above the 1.2350 level against the US Dollar and started a downside move. The EUR/USD traded lower and declined below a few important support levels such as 1.2300 and 1.2280 to settle below the 100 hourly simple moving average.
The pair traded close to the 1.2200 level and formed a low near 1.2217. Later, an upside correction was initiated and the pair moved above the 23.6% Fib retracement level of the last downside move from the 1.2314 high to 1.2217 low.
However, there are many barriers on the upside around 1.2300. There is also a crucial bearish trend line forming with resistance near 1.2275 on the hourly chart. Moreover, the 50% Fib retracement level of the last downside move from the 1.2314 high to 1.2217 low is at 1.2266.
Therefore, if the pair moves higher, it is likely to face hurdles near the 1.2280 and 1.2300 levels. On the downside, the 1.2220 level is a decent support followed by the 1.2200 handle.
Originally published at — ForexGator.com.
