Key Highlights
- The Euro surged higher this past week and traded towards 1.1960 against the US Dollar.
- The EUR/USD pair broke a couple of important bearish trend lines near 1.1800 on the 4-hours chart.
- Euro Zone’s M3 Money Supply for July 2017 was up by 4.5%, compared with the forecast of +4.9% (YoY).
- The Dallas Fed Manufacturing Business Index for August 2017 will be released today, which is forecasted to decline from 16.8 to around 15.5.
EUR/USD Technical Analysis
The Euro is an excellent bullish run from the 1.1650 swing low against the US Dollar. The EUR/USD pair recently traded to a new 2-year high and eyes more gains towards 1.2000 in the near term.
The pair started a strong uptrend from the 1.1650 low and traded above the 100 simple moving average (H4). During the upside move, there was a break above a couple of important bearish trend lines near 1.1800 on the 4-hours chart.
A new monthly high was formed at 1.1959 before the pair started a short-term correction. It already tested the 23.6% Fib retracement level of the last wave from the 1.1773 low to 1.1959 high.
Downsides remain supported by the 1.1900 level and any further declines would face strong buying interest near 1.1850.
Euro Zone’s M3 Money Supply
Today in the Euro Zone, the M3 Money Supply report for July 2017 was released by the European Central Bank. The forecast was slated for a rise of 4.9% in the supply compared with the same month a year ago.
The actual result was on the lower side, as there was an increase of 4.5% in the M3 Money Supply. Looking at the narrower aggregate M1, comprising currency in circulation and overnight deposits, it was up by more than 9% July 2017 compared with the same month a year ago.
Referring to the 3-month change, the M3 Money Supply rose 4.8%, less than the last 4.9%. Private loans were up by 2.4% in July 2017 (YoY), more than the last reading of 2.1%.
To sum up, the overall trend for EUR/USD is bullish and any dips towards 1.1860 or 1.1820 remains supported.
