Key Highlights
- The Euro started a decent recovery and moved above 1.1620 against the US Dollar.
- There is a major bearish trend line forming with resistance at 1.1760 on the 4-hours chart of EUR/USD.
- The Michigan Consumer Sentiment Index (Prelim) in Nov 2017 decreased from 100.7 to 97.8.
- Today in the Euro Zone, Portugal’s CPI for Oct 2017 will be released, which is forecasted to increase by 1.4% (YoY).
EURUSD Technical Analysis
The Euro recently formed a decent support above 1.1550 against the US Dollar. The EUR/USD pair is recovering, but faces important resistances like 1.1700, 1.1720 and 1.1760.
The pair has moved above the 23.6% Fib retracement level of the last drop from the 1.1836 high to 1.1554 low. However, buyers seem to be struggling near the 1.1700 level and the 100 simple moving average (red, 4-hour).
Above 1.1700, the 61.8% Fib retracement level of the last drop from the 1.1836 high to 1.1554 low is around 1.1720 and the 200 simple moving average (green, 4-hour). Moreover, there is a major bearish trend line forming with resistance at 1.1760 on the same chart.
Therefore, there are many barriers for EUR/USD on the upside starting with 1.1700. On the downside, an initial support is at 1.1620, followed by the 1.1600 handle that holds a lot of importance in the near term for buyers.
Michigan Consumer Sentiment Index
This past Friday in the US, the Michigan Consumer Sentiment Index (Prelim) for Nov 2017 was released by the University of Michigan. The forecast was slated for no change from the last reading of 100.7 in Nov 2017.
However, the actual result was disappointing, as there was a decline in the Michigan Consumer Sentiment Index from 100.7 to 97.8. The final index reading is scheduled on November 22, 2017 at 10am ET.
The report added:
Consumer sentiment declined slightly in early November due to widespread losses across current and expected economic conditions. The losses were quite small as the Sentiment Index remained at its second highest level since January.
Overall, the EUR/USD pair is showing a lot of positive signs, but it is facing many significant resistances on the upside such as 1.1720 and 1.1760.
