EURUSD – Euro Positioning Well For More Gains Vs Dollar20 March, 2017 by Aayush Jindal in EURUSD, Fundamental Analysis, Market Analysis, Technical Analysis
- The Euro remained above the 1.0700 support area against the US Dollar, and now looking for more gains.
- There are a couple of bullish trend lines with support at 1.0710 and 1.0620 formed on the 4-hours chart of EURUSD.
- Later today, the German Producer Price Index for Feb 2017 will be released by the Statistisches Bundesamt Deutschland with forecast as +0.2% (MoM).
- In New Zealand today, the Westpac Consumer Confidence for Q1 2017 released by Westpac New Zealand posted a minor decline from 113.1 to 111.9.
EURUSD Technical Analysis
The Euro maintained its bullish bias above the 1.0700 support area against the US Dollar. Now, the EURUSD pair is looking to extend gains towards the 1.0800 level.
This past week, the pair dipped towards the 100 and 200 hours moving average (4-hours) near 1.0630 where it found support. The pair bounced back sharply and now placed comfortably above the 1.0700 resistance area. The same level might now act as a support if the pair moves down.
The pair recently tested the 23.6% Fib retracement level of the last wave from the 1.0599 low to 1.0782 high where it found support. The pair is now moving higher, and looking to challenge the last high at 1.0782. It might even break it for a move towards 1.0800.
New Zealand Westpac Consumer Confidence
Earlier today in New Zealand, the Westpac Consumer Confidence for Q1 2017 was released by Westpac New Zealand. The market was expecting the indicator of the mood of consumers or business to remain stable around 113.00.
However, the result was a bit lower, as there was a decline to 111.9 in Q1 2017. The report added that the “New Zealand economy hit a bit of a soft patch in late 2016. GDP rose only 0.4% in the December quarter – close to what we had forecast, but below what many were expecting, including the Reserve Bank.”
Overall, the result was not positive, but there was no major negative impact on the NZDUSD pair, as it remained above the 0.7000 support.
Other Economic Releases to Watch Today
- German Producer Price Index for Feb 2017 (MoM) – Forecast +0.2%, versus +0.7% previous.
- Canadian Wholesale Sales for Jan 2017 (MoM) – Forecast +0.5%, versus +0.7% previous.