- The Euro is mostly trading in a range with a major resistance near 1.1280 against the US Dollar.
- There is a major bullish trend line formed at 1.1215 on the hourly chart of EUR/USD.
- Recently in the US, the Consumer Credit for April 2017 released by the Board of Governors of the Federal Reserve posted $8.20B, less than the forecast of $15.50B.
EUR/USD Technical Analysis
The Euro traded nicely and moved above the 1.1180 and 1.1210 resistance levels against the US Dollar. The EUR/USD pair is currently trading above the 1.1200 level and remains in a decent uptrend.
At the moment, the pair is forming a range pattern with support at 1.1220 and resistance at 1.1280.
The pair recently tested the range resistance at 1.1280 and failed to break it, which ignited a minor downside move.
EUR/USD Hourly Chart
An initial support on the downside is around the 50% Fib retracement level of the last wave from the 1.1205 low to 1.1281 high.
There is also a major bullish trend line formed at 1.1215 on the hourly chart of EUR/USD. It may act as a strong support and prevent declines below 1.1200 in the near term.
As long as the pair stays above the range support and trend line at 1.1215, there can be a bounce back in the near term. Buying dips near 1.1230-20 can be considered if the pair corrects further.
US Consumer Credit
Recently the US, the Consumer Credit for April 2017 was released by the Board of Governors of the Federal Reserve. The market was for the Consumer Credit to be $15.50B in April 2017, compared with last reading of $16.43B.
The actual result was lower than the forecast, as the Consumer Credit came in at $8.20B. On the other hand, the last reading was revised up from $16.43B to $19.54B.
Later today in the Euro Zone, the Gross Domestic Product for Q1 2017 will be released by the Eurostat. The market is positioned for an increase of 0.5%, compared with Q4 2016. If the actual is better or in line with the forecast, there is a chance of a break above 1.1280 in EUR/USD.
The overall trend is positive for the EUR/USD pair as long as it stays above the 1.1200 support zone.