Key Highlights
- The Euro moved and settled above the 1.2150 and 1.2200 resistance levels against the US Dollar.
- There is a major bullish trend line forming with support at 1.2250 on the daily chart of EUR/USD.
- The US Durable Goods Orders in Feb 2018 increased 3.1%, more than the forecast of +1.5%.
- Today, the Chicago Fed National Activity Index (CFNAI) for Feb 2018 will be released, which is forecasted to increase from 0.12 to 0.19.
EURUSD Technical Analysis
During the past few weeks, the Euro traded nicely, broke a few hurdles, and settled above the 1.2150 and 1.2200 resistance levels against the US Dollar. The EUR/USD pair is currently consolidating above 1.2200 and remains supported on the downside.
The pair traded as high as 1.2559 recently before starting a downside correction. It declined and moved below the 50% Fib retracement level of the last wave from the 1.1915 low to 1.2559 high.
However, the downside move was protected by the 1.2150-1.2200 support area. There is also a major bullish trend line forming with support at 1.2250 on the daily chart. Moreover, the 61.8% Fib retracement level of the last wave from the 1.1915 low to 1.2559 high also served as a support.
The pair is currently trading well above the trend line and 1.2200 on the daily chart. It seems like the pair is consolidating above 1.2200 and is preparing for the next move.
On the upside, a break above the 1.2450 resistance could open the gates for more gains above 1.2500. On the downside, the pair remains supported above the 1.2200 and 1.2150 levels.
This past week in the US, the Durable Goods Orders for Feb 2018 was released by the US Census Bureau. The market was looking for a rise of 1.5% compared with the last reading of -3.7%.
The real outcome was positive as there was an increase of 3.1% in orders. The last reading was revised up from -3.7% to -3.5%. Overall, the result was better than the forecast and helped the US Dollar in the short term.
