EURUSD Bulls Remain In Control Above 1.1400 Post Euro Zone CC
Aayush Jindal
Key Highlights
Euro enjoyed a nasty ride towards the upside against the US dollar, as the latter one weakened a lot recently.
EURUSD climbed higher and broke an important resistance of 1.1400-20, which might act as a support moving ahead.
Euro Zone Consumer Confidence released by the European Commission recently managed to post a better than expected reading of -6.8 in August 2015.
EURUSD Technical AnalysisThe US dollar struggled a lot recently against most major currencies, including the Euro. The EURUSD pair surged higher and traded above a major resistance area of 1.1400. There was a lot of buying interest noted for the pair, which helped it to gain traction. There is a bullish trend line formed on the hourly chart, which is acting as a support every time the pair moves or corrects lower.One concerning thing is that the highlighted trend line is very steep, which means if sellers manage to clear it, then we might witness a short-term correction in EURUSD. As long as the pair is above the trend line and support area more gains are likely.On the downside, there is a support around the 23.6% Fib retracement level of the last wave from the 1.1239 low to 1.1497 high. The most important one is around the 38.2% Fib level siting around the highlighted trend line.On the upside, a break above the recent high of 1.1497 might call for a move towards 1.1520 where sellers might appear one more time.Euro Zone Consumer ConfidenceThe last release in the Euro Zone was the Consumer Confidence, i.e. a leading index that measures the level of consumer confidence in economic activity published by the European Commission. The market was expecting it to move from -7.1 to -6.9 in August 2015. However, the outcome was above the forecast, as the Consumer Confidence climbed to -6.8.The Euro buyers liked the outcome and as a result there was an upside reaction noted in the EURUSD pair. No doubt, the pair is showing a lot of positive signs, but it would be too early to call for a major US dollar correction. We need to wait for a few more signs before calling it a reversal.
One concerning thing is that the highlighted trend line is very steep, which means if sellers manage to clear it, then we might witness a short-term correction in EURUSD. As long as the pair is above the trend line and support area more gains are likely.On the downside, there is a support around the 23.6% Fib retracement level of the last wave from the 1.1239 low to 1.1497 high. The most important one is around the 38.2% Fib level siting around the highlighted trend line.On the upside, a break above the recent high of 1.1497 might call for a move towards 1.1520 where sellers might appear one more time.Euro Zone Consumer ConfidenceThe last release in the Euro Zone was the Consumer Confidence, i.e. a leading index that measures the level of consumer confidence in economic activity published by the European Commission. The market was expecting it to move from -7.1 to -6.9 in August 2015. However, the outcome was above the forecast, as the Consumer Confidence climbed to -6.8.The Euro buyers liked the outcome and as a result there was an upside reaction noted in the EURUSD pair. No doubt, the pair is showing a lot of positive signs, but it would be too early to call for a major US dollar correction. We need to wait for a few more signs before calling it a reversal.
One concerning thing is that the highlighted trend line is very steep, which means if sellers manage to clear it, then we might witness a short-term correction in EURUSD. As long as the pair is above the trend line and support area more gains are likely.On the downside, there is a support around the 23.6% Fib retracement level of the last wave from the 1.1239 low to 1.1497 high. The most important one is around the 38.2% Fib level siting around the highlighted trend line.On the upside, a break above the recent high of 1.1497 might call for a move towards 1.1520 where sellers might appear one more time.Euro Zone Consumer ConfidenceThe last release in the Euro Zone was the Consumer Confidence, i.e. a leading index that measures the level of consumer confidence in economic activity published by the European Commission. The market was expecting it to move from -7.1 to -6.9 in August 2015. However, the outcome was above the forecast, as the Consumer Confidence climbed to -6.8.The Euro buyers liked the outcome and as a result there was an upside reaction noted in the EURUSD pair. No doubt, the pair is showing a lot of positive signs, but it would be too early to call for a major US dollar correction. We need to wait for a few more signs before calling it a reversal.