EURUSD – Euro Remains in the Driver’s Seat versus US Dollar

EURUSD – Euro Remains in the Driver’s Seat versus US Dollar

Key Highlights

  • Euro traded higher recently against the US Dollar, and may continue to gain bids.
  • There is a critical bullish trend line formed on the 4-hours chart of EURUSD, acting as a support area for the Euro.
  • Today in the US, the NY Empire State Manufacturing Survey index will be by the Federal Reserve Bank of New York.
  • The forecast is slated for a rise from the last reading of 0.55 to 2.00 in August 2016.

EURUSD Pair Technical Analysis

The Euro looks like is in an uptrend against the US dollar, and may trade further higher. There are many supports formed on the downside for EURUSD, which may act as a barrier for sellers.

EURUSD Pair Technical Analysis

As mentioned, there is a critical bullish trend line formed on the 4-hours chart of EURUSD, which may act as a bid zone if the pair moves down from the current levels. The pair is also well supported on the downside as the 100 and 200 simple moving averages are positioned below the trend line.

On the upside, a break above 1.1180 is needed for a retest of the recent swing high of 1.1220.

UK Rightmove House Price Index

Earlier during the Asian session, the UK Rightmove House Price Index was released. It provides a sample of residential property prices in the UK and shows the strength of the UK housing market.

The forecast was slated for a minor decline in August, and the outcome was as expected. The UK Rightmove House Price Index declined by 1.2% in August 2016, compared with the previous month.

In terms of the yearly change, the UK Rightmove House Price Index increased by 4.1%, which was less than the last rise of 4.5%. The report added that “Buyer demand in the two weeks since the surprise referendum result is consistent with 2014 although down on 2015. Same period in 2015 benefitted substantially from post-election boost so enquiries this year are down 16% compared to that period“.

NY Empire State Manufacturing Survey Index

Later today in the US, the Empire State Manufacturing Survey index, which gauges business conditions for New York manufacturers will be published by the Federal Reserve Bank of New York.

The market is expecting an increase from the last reading of 0.55 to 2.00 in August 2016.



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.

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