Euro US Dollar

EUR/USD Analysis – Euro Correcting Lower Towards 1.1475 Vs US Dollar

  • The Euro after trading towards the 1.1580 level found sellers and started a downside move against the US Dollar.
  • The EUR/USD pair broke a major bullish trend line with support at 1.1520 on the hourly chart.
  • Today in the Euro Zone, the Current Account figure for May 2017 was released by European Central Bank.
  • The outcome was above the forecast of €23.3B, as the trade surplus was €30.1B.

EUR/USD Technical Analysis

The Euro made a nice upside move above 1.1450 this week against the US Dollar. The EUR/USD pair started moving higher and traded above 1.1560.

A high was formed at 1.1582 from where a correction wave was initiated. The pair moved down and broke a major bullish trend line with support at 1.1520 on the hourly chart.

EUR/USD Hourly Chart

EUR/USD Technical Analysis

During the correction, the pair also cleared the 23.6% Fib retracement level of the last wave from the 1.1369 low to 1.1582 high.

It has opened the doors for an extended correction towards 1.1475. The pair may soon test the 50% Fib retracement level of the last wave from the 1.1369 low to 1.1582 high, which is a major support area.

The 1.1485-75 support zone holds a lot of importance in the near term and must prevent declines.

As long as the pair remains above 1.1475, it could bounce back and attempt a move towards 1.1530. Above 1.1530, the pair may retest the last swing high at 1.1580. On the other hand, a break below 1.1475 could take the pair towards 1.1420.

Euro Zone Current Account

Today in the Euro Zone, the Current Account figure for May 2017 was released by European Central Bank. The forecast was lined up for a trade surplus of €23.3B, more than the last €22.0B.

The outcome was above the forecast of €23.3B, as the trade surplus was €30.1B. The last reading was also revised up from €22.0B to €23.5B. The report stated that:

This reflected surpluses for goods (€26.9 billion), primary income (€11.4 billion) and services (€2.6 billion), which were partly offset by a deficit for secondary income (€10.7 billion).

Overall, the Euro may continue to correct lower, but likely to find support near 1.1485-75 in the near term.

About Aayush Jindal 109 Articles
With over 10 years of experience and still counting, Aayush posses great technical and fundamental analysis skills in the Forex, Cryptocurrency and Financial Markets. His Analysis are well-know and famous for engaging with viewers easily. He is from IT background with a lot of passion in the Forex and Cryptocurrency Arena.


Leave a Reply

1 Trackback / Pingback

  1. FB Association – Forex & Binary Traders Association