The Euro after a dip towards 1.0660 against the US Dollar found support, and recovered.
This past week’s highlighted ascending channel pattern on the 4-hours chart of EURUSD is still active with support at 1.0700.
The pattern may continue to act as a catalyst, and could ignite a rally towards 1.0770.
Today, the Euro Zone Economic Confidence will be released by the European Commission, which is forecasted to increase from 107.8 to 107.9 in Jan 2017.
EURUSD Technical Analysis
The Euro remained supported this past week against the US Dollar, and it looks like the EURUSD pair may attempt to move back towards the 1.0770-1.0800 resistance area.This past week, I highlighted an ascending channel patternon the 4-hours chart of EURUSD. It continued to remain in action, and now has a support at 1.0700. The pair recently bounce from the 1.0660 support, and broke the 50% Fib retracement level of the last decline from the 1.0772 high to 1.0658 low.So, there are chances of more gains in the near term may be towards 1.0770. If the momentum stay intact, there is even a possibility of a test of the 1.236 extension of the last decline from the 1.0772 high to 1.0658 low at 1.0799 where sellers may appear.
Euro Zone Economic Confidence
Today, the Euro Zone Economic Confidence, which is a survey of consumers’ confidence in economic activity and indicates the trend of the overall Euro Zone economy will be released by the European Commission.The forecast is slated for a rise from the last reading of 107.8 to 107.9 in Jan 2019. If the result is positive, there is a chance that EURUSD may continue to move higher until the 1.0800 resistance.
US Pending Home Sales
Today, the Pending Home Sales, which is a leading indicator of trends of the housing market in the US will be released by the National Association of Realtors.The forecast is slated for a rise of 0.6% in sales in Dec 2016, compared with the previous month. The last change was -2.5%. So, the market is clearly expecting a growth. If the result fails to impress, then it may put further pressure on the greenback.
This past week, I highlighted an ascending channel patternon the 4-hours chart of EURUSD. It continued to remain in action, and now has a support at 1.0700. The pair recently bounce from the 1.0660 support, and broke the 50% Fib retracement level of the last decline from the 1.0772 high to 1.0658 low.So, there are chances of more gains in the near term may be towards 1.0770. If the momentum stay intact, there is even a possibility of a test of the 1.236 extension of the last decline from the 1.0772 high to 1.0658 low at 1.0799 where sellers may appear.