EUR/USD in Slow and Steady Uptrend23 July, 2018 by Aayush Jindal in Market Analysis
- The Euro found a strong support near 1.1580 and recovered against the US Dollar.
- There is a key bullish trend line in place with support at 1.1600 on the 4-hours chart of EUR/USD.
- The pair is placed nicely above the 1.1650 support and the 100 SMA (red, 4-hour).
- The US Existing Home Sales for June 2018 will be released today, which is forecasted to increase 1.5% (MoM).
EURUSD Technical Analysis
The Euro dipped this past week, but the 1.1580 support area acted as a strong barrier against the US Dollar. The EUR/USD pair recovered and moved back above the 1.1650 resistance.
Looking at the 4-hours chart, the pair found a key bullish trend line with current support at 1.1600. A low was formed at 1.1575 and the pair started an upward move. It climbed above the 50% Fib retracement level of the last decline from the 1.1744 high to 1.1575 low.
More importantly, there was as close above the 1.1650 resistance, the 100 simple moving average (red, 4-hours) and the 200 SMA (green, 4-hours). Later, the pair attempted a close above a connecting bearish trend line with resistance at 1.1705.
It seems like the pair is placed in a nice uptrend above the 1.1650 support. Should there be a break above the last high at 1.1744, there could be more gains towards the 1.236 Fib extension level of the last decline from the 1.1744 high to 1.1575 low at 1.1784.
On the downside, supports are seen at 1.1670, 1.1650 and the 100 SMA. Below 1.1650, the pair may perhaps test the bullish trend line with support at 1.1600.
Economic Releases to Watch Today
- US Existing Home Sales for June 2018 (MoM) – Forecast +1.5%, versus -0.4% previous.
- Canadian Wholesale Sales for May 2018 (MoM) – Forecast +0.6%, versus +0.1% previous.