EUR/USD – Trend is Super Bullish for Euro To Dollar
Aayush Jindal
Key Highlights
The Euro closed the past week above 1.1180 against the US Dollar, and looks set for more upsides.
To start an uptrend, the EUR/USD pair broke a major resistance trend line at 1.1095 on the 4-hours chart.
Recently in the Euro Zone, the Consumer Confidence for May 2017 (preliminary) released by the European Commission posted a rise from -3.6 to -3.3.
In the US, the Chicago Fed National Activity Index (CFNAI) for April 2017 will be released today, which is forecasted to decline from 0.08.
EURUSD Technical Analysis
The Euro had an amazing last week, as it chased the 1.1200 resistance against the US Dollar. Going forward, the EURUSD pair may attempt a move towards 1.1250 or 1.1280.To kick start the upside move, the pair broke an important hurdle at 1.1000. Later, it gained momentum and was able to break the 1.1150 resistance. The best part was a close above a major resistance trend line at 1.1095 on the 4-hours chart.The pair also cleared the last swing high at 1.1171, and now chasing the 1.618 extension of the last decline from the 1.1171 high to 1.1075 low at 1.1231.The H4 RSI of EURUSD is currently above the 65 level, and heading higher. If there is a break above 1.1231, there is a chance of a move towards 1.1250.
Euro Zone Consumer Confidence
Recently in the Euro Zone, the Consumer Confidence for May 2017 (preliminary) was released by the European Commission. The forecast was lined up for a rise in the index from -3.6 to -3.0 in May 2017.The result was lower than the forecast, as there was a rise to -3.3. The report published stated that the “DG ECFIN flash estimate of the consumer confidence indicator remained broadly unchanged in both the euro area (+0.3 points to -3.3) and the EU (+0.1 points to -3.3) compared to April“.One positive to note is the fact that the index is now well above its long term average, and currently positioned at the best levels since 2014.Overall, the market sentiment is positive for the Euro, which may push EUR/USD towards the 1.1250 level in the near term.
To kick start the upside move, the pair broke an important hurdle at 1.1000. Later, it gained momentum and was able to break the 1.1150 resistance. The best part was a close above a major resistance trend line at 1.1095 on the 4-hours chart.The pair also cleared the last swing high at 1.1171, and now chasing the 1.618 extension of the last decline from the 1.1171 high to 1.1075 low at 1.1231.The H4 RSI of EURUSD is currently above the 65 level, and heading higher. If there is a break above 1.1231, there is a chance of a move towards 1.1250.
The result was lower than the forecast, as there was a rise to -3.3. The report published stated that the “DG ECFIN flash estimate of the consumer confidence indicator remained broadly unchanged in both the euro area (+0.3 points to -3.3) and the EU (+0.1 points to -3.3) compared to April“.One positive to note is the fact that the index is now well above its long term average, and currently positioned at the best levels since 2014.Overall, the market sentiment is positive for the Euro, which may push EUR/USD towards the 1.1250 level in the near term.