EUR/USD Eyeing Further Gains Above 1.1840

Key Highlights

  • The Euro moved higher this past week and recovered above 1.1700 against the US Dollar.
  • There is a major bullish trend line formed with support at 1.1720 on the 4-hours chart of EUR/USD.
  • The pair must move above the 1.1840 barrier for more gains in the near term.
  • Recently in China, the CPI for May 2018 increased 1.8%, similar to the forecast (YoY).

EURUSD Technical Analysis

The Euro started a solid recovery from the 1.1520 swing low against the US Dollar. The EUR/USD pair moved above the 1.1650 and 1.1700 resistance levels to move into a bullish zone.

EURUSD Technical Analysis Euro US Dollar

The pair even broke 1.1800 hurdle and traded as high as 1.1839. Later, sellers appeared and the pair corrected below the 23.5% fib retracement level of the last wave from the 1.1617 low to 1.1839 high.

However, there are many supports on the downside around the 1.1720 level. There is also a major bullish trend line formed with support at 1.1720 on the 4-hours chart of EUR/USD.

The 100 simple moving average (4-hours) is also near 1.1720. Therefore, any dips from the current levels are likely to find buyers around the 1.1730 and 1.1720 levels.

On the upside, there is a crucial barrier for buyers near 1.1820 and 1.1840. An upside break above 1.1840 could open the doors for a push towards the 1.1900 level.

Recently in China, the CPI report for May 2018 was released by the National Bureau of Statistics of China. The market was looking for a rise or around 1.8%, like the last reading.

The actual result was similar to the forecast as there was a rise of 1.8%. On the other hand, the PPI in May 2018 rose 4.1%, more than the forecast of 3.8% (YoY).

The overall market sentiment is positive for EUR/USD as long as the pair is above the 1.1720 support.

Economic Releases to Watch Today

  • UK Industrial Production for April 2018 (MoM) – Forecast +0.2%, versus +0.1% previous.
  • UK Manufacturing Production for April 2018 (MoM) – Forecast +0.3%, versus -0.1% previous.


Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

Aayush's latest posts