- The Euro surged higher recently and traded towards the 1.1780 level against the US Dollar.
- A connecting resistance trend line at 1.1775 on the hourly chart of the EUR/USD pair prevented upside gains.
- Today in the Euro Zone, German GfK Consumer Confidence for August 2017 was released today.
- The outcome was above the forecast, as there was an increase from the last reading of 10.6 to 10.8.
EUR/USD Technical Analysis
The Euro gained a lot of traction lately and was able to move above the 1.1650 and 1.1680 levels against the US Dollar. The EUR/USD pair gained bullish momentum and traded close to the 1.1780 level.
A high was formed at 1.1775 where the pair faced a connecting resistance trend line on the hourly chart. It prevented gains above 1.1780 and pushing the pair lower.
EUR/USD Hourly Chart
The pair is correcting lower and already below the 23.6% Fib retracement level of the last wave from the 1.1611 low to 1.1775 high.
On the downside, there is a major support waiting around 1.1680. It was a resistance earlier, and now can be seen as a buy zone above 1.1650. It also coincides with the 50% Fib retracement level of the last wave from the 1.1611 low to 1.1775 high.
Overall, buying dips near 1.1680-50 may be considered in the near term as long as the pair is above 1.1610.
German GfK Consumer Confidence
Today in the Euro Zone, the German GfK Consumer Confidence for August 2017 was released today. The forecast was lined up for no change in the index from the last reading of 10.6.
The outcome was above the forecast, as there was an increase from the last reading of 10.6 to 10.8. The Economic outlook index was also higher this time and moved up by 3.3 points to reach 44.6 points. The report stated that:
Consumers are expecting that the domestic economy can even pick it up a notch over the course of the remaining year. Economic expectation continues to rise, and income expectation has surpassed its post-reunification high of last month. Consumer mood, however, suffered a few minor blows, but still remains at a high level.
Overall, the Euro may correct a few pips lower in the near term, but likely to stay supported near the 1.1680 level.