EUR/USD – Euro Remains In Uptrend Above 1.1400 Vs US Dollar
Aayush Jindal
Key Highlights
The Euro made a nice upside move this past week and now looks set to challenge 1.1500 vs the US Dollar.
There are a few important bullish trend lines with supports as 1.1420 and 1.1370 forming on the 4-hours chart of EUR/USD.
This past Friday, the US Consumer Price Index for June 2017 was published, which posted +1.6%, less than the forecast of +1.7% (YoY) and down from the last +1.9%.
Today in the Euro Zone, the CPI for June 2017 will be released, which is forecasted to increase by 1.3% (YoY), just as the last reading.
EURUSD Technical Analysis
The Euro survived losses below 1.1400 this past week against the US Dollar. The EUR/USD is now positioned well for more gains towards or above 1.1500.There was a dip towards 1.1380-70 where the pair found support and recovered to trade above 1.1440. On the downside, there are a few important bullish trend lines with supports as 1.1420 and 1.1370 forming on the 4-hours chart.At the moment, the pair seems to be correcting from the recent high of 1.1474. An initial support sits around the 38.2% Fib retracement level of the last wave from the 1.1370 low to 1.1474 high.On the upside, there is a connecting resistance trend line at 1.1505. Sooner or later, there are chances of EUR/USD testing 1.1500-1.1510 in the near term.
US Consumer Price Index (CPI)
This past Friday in the US, the Consumer Price Index for June 2017 was released by the US Bureau of Labor Statistics. The market was positioned for a rise of 0.1% compared with the previous month.However, the result was slightly negative, as there was no change in the CPI in June 2017. In terms of the yearly change, there was an increase of 1.6%, less than the forecast of +1.7% (YoY) and down from the last +1.9%.The report added that:
The energy index declined again in June, falling 1.6 percent; this offset an increase in the index for all items less food and energy. All the major energy component indexes declined, with the gasoline index falling 2.8 percent.
Overall, the EUR/USD pair remains in an uptrend as long as it is above 1.1400 in the near term.
Economic Releases to Watch Today
Euro Zone Consumer Price Index June 2017 (MoM) – Forecast 0%, versus -0.1% previous.
Euro Zone Consumer Price Index June 2017 (YoY) – Forecast +1.3%, versus +1.3% previous.
Euro Zone Consumer Price Index Ex Food & Energy June 2017 (YoY) – Forecast +1.2%, versus +1.2% previous.
There was a dip towards 1.1380-70 where the pair found support and recovered to trade above 1.1440. On the downside, there are a few important bullish trend lines with supports as 1.1420 and 1.1370 forming on the 4-hours chart.At the moment, the pair seems to be correcting from the recent high of 1.1474. An initial support sits around the 38.2% Fib retracement level of the last wave from the 1.1370 low to 1.1474 high.On the upside, there is a connecting resistance trend line at 1.1505. Sooner or later, there are chances of EUR/USD testing 1.1500-1.1510 in the near term.