Key Highlights
- The Euro formed a major bottom around 1.2155 against the US Dollar, and recovered sharply.
- There was a break above a crucial bearish trend line with resistance at 1.2280 on the 4-hours chart of EUR/USD.
- The Michigan Consumer Sentiment Index in Feb 2018 posted a decline from 99.9 to 99.7.
- The Euro Zone Services PMI for Feb 2018 will be released today, which is forecasted to remain at 56.7.
EURUSD Technical Analysis
After a major decline this past week, the Euro found support near 1.2150. The EUR/USD pair started a sharp upside recovery and traded above the 1.2250 resistance area.
The upside move seems to be positive and if the pair gains momentum above 1.2350, there could be further upsides in the near term.
EURUSD Technical Analysis Euro US Dollar
During the upside move, there was a break above a crucial bearish trend line with resistance at 1.2280 on the 4-hours chart. The pair also broke the 50% Fib retracement level of the last decline from the 1.2355 high to 1.2154 low.
The past few candles are mostly green, which suggest a short-term trend change in EUR/USD above 1.2250. On the downside, supports are at 1.2280 and 1.2250.
If the pair continues to move higher, then a break above 1.2350 could push the pair towards the 1.236 Fib extension of the last decline from the 1.2355 high to 1.2154 low at 1.2402.
Overall, it seems like the US Dollar is under pressure. This past week it declined sharply against the Japanese Yen as the USD/JPY pair traded below the 106.20 support levels. The pair may continue to decline as it is currently in a bearish zone below 106.50.
Economic Releases to Watch Today
- Germany’s Services PMI for Feb 2018 – Forecast 55.3, versus 55.3 previous.
- Euro Zone Services PMI for Feb 2018 – Forecast 56.7, versus 56.7 previous.
- US Services PMI for Feb 2018 – Forecast 54.6, versus 55.9 previous.
- US ISM Non-Manufacturing Index for Feb 2018 – Forecast 59.4, versus 59.9 previous.
