Key Highlights
- The Euro made a nice upside move from the 1.1300 swing low against the US Dollar.
- There was a break above a crucial bearish trend line with resistance at 1.1460 on the 4-hour chart of EUR/USD.
- The US Durable Goods Orders declined 1.7% in July 2018, more than the -0.5% forecast.
- Today, the German IFO Business Climate Index for August 2018 will be released, which is forecasted to rise from 101.7 to 102.0.
EURUSD Technical Analysis
After a major decline, the Euro found support near the 1.1300 level against the US Dollar. The EUR/USD pair climbed higher and broke the 1.1450, 1.1500 and 1.1550 resistance levels.
Looking at the 4-hours chart, the pair made a nice upside move and traded above the 1.1500 pivot level. There was also a break above the 50% fib retracement level of the last decline from the 1.1745 high to 1.1300 low.
Moreover, there was a break above a crucial bearish trend line with resistance at 1.1460 on the same chart. Lastly, the pair settled above the 1.1550 level and the 100 simple moving average (red).
Once there is a proper close above the 76.4% fib retracement level of the last decline from the 1.1745 high to 1.1300 low, there could be more gains above the 1.1650 level in the near term.
On the flip side, if there is a downside correction, the pair is likely to find support near the 1.1575 and 1.1540 support levels.
Overall, the Euro may perhaps continue to correct higher as long as it is above 1.1540. Similarly, there could be more upsides in the GBP/USD pair towards 1.2900 and 1.2950 level.
Economic Releases to Watch Today
- German IFO Business Climate Index for August 2018 – Forecast 102.0, versus 101.7 previous.
- German IFO Current Assessment Index August 2018 – Forecast 105.5, versus 105.3 previous.
- German IFO Expectations Index for August 2018 – Forecast 98.5, versus 98.3 previous.
- Dallas Fed Manufacturing Business Index for August 2018 – Forecast 36.9, versus 32.3 previous.
- Chicago Fed National Activity Index for July 2018 – Forecast 0.13, versus 0.43 previous.
