Key Highlights
- The Euro traded lower recently towards an important support at 1.2280 against the US Dollar.
- There is a major bullish trend line forming with support at 1.2285 on the 4-hours chart of EUR/USD.
- The pair must hold the stated 1.2280 support to start a fresh upward wave.
- Today, the US Manufacturing PMI for March 2018 will be released, which is forecasted to decline from 55.7 to 55.6.
EURUSD Technical Analysis
There was a downside reaction from the 1.2475 level in the Euro against the US Dollar. The EUR/USD pair declined and it is currently trading near a major support above 1.2280.
Looking at the 4-hours chart, there is a decent support base forming above the 1.2280 level. There is also a major bullish trend line forming with support at 1.2285 on the same chart.
However, the pair is trading well below the 100 (red) and 200 (green) simple moving averages (4-hours). At the moment, the pair is testing the 23.6% Fib retracement level of the last decline from the 1.2476 high to 1.2283 low.
The pair has to move above 1.2330 and the 100 (red) and 200 (green) simple moving averages (4-hours) to start a fresh upward wave. The next hurdle on the upside could be the 50% Fib retracement level of the last decline from the 1.2476 high to 1.2283 low at 1.2380.
On the downside, the trend line support near 1.2285-90 and the 1.2283 low holds a lot of importance. A break and close below the stated supports could ignite further declines towards the 1.2200 and 1.2180 support levels in the near term.
