Key Highlights
- The Euro gained a lot of traction this past week and moved above 1.1750 against the US Dollar.
- There is a major contracting triangle pattern with support at 1.1720 forming on the 4-hours chart of EUR/USD.
- Today in the Euro Zone, the German Retail Sales for June 2017 was released, which posted an increase of 1.1% (MoM).
- Today in the US, the Pending Home Sales figure for June 2017 will be released, which is forecasted to increase by 1% (MoM).
EURUSD Technical Analysis
There were good gains in the Euro as the shared currency traded above 1.1750 vs the US Dollar. The EUR/USD is placed well above 1.1700 and currently approaching a short-term break.
Looking at the 4-hours chart, there is a major contracting triangle pattern forming with support at 1.1720. On the upside, the triangle resistance is near 1.1770, which is a confluence of two connecting trend lines.
On the downside, the triangle support at 1.1720 coincides with the 38.2% Fib retracement level of the last wave from the 1.1650 low to 1.1764 high. As long as the pair is above the 1.1720-00 support, there is a chance of it moving past 1.1770.
On the flip side, a break below 1.1700 could take the pair towards the last swing low of 1.1650. The overall trend is positive above 1.1700 for EUR/USD, as the 100 SMA is moving nicely higher along with the RSI (H4).
German Retail Sales
Today in the Euro Zone, the German Retail Sales for June 2017 was released by the Statistisches Bundesamt Deutschland. The market forecast was an increase of 0.2% compared with the previous month.
The actual result was better, as there was an increase of 1.1% in sales. Looking at the yearly change, there was an increase of 1.5%, which was less than the forecast of 2.7% and the last rise 4.9% (revised).
The report added that:
According to provisional data turnover in retail trade in June 2017 was in real terms 1.5% and in nominal terms 3.1% larger than that in June 2016. The number of days open for sale was 25 in June 2017 and 26 in June 2016.
Overall, the EUR/USD pair remains supported for more gains as long as the 1.1700 support is intact.
