EUR/USD Eyeing Further Gains Above 1.184011 June, 2018 by Aayush Jindal in Market Analysis
- 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.
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.