Key Highlights
- The Euro gained bullish momentum this past week and traded above 1.1700 against the US Dollar.
- There was a break above a major contracting triangle with resistance at 1.1765 on the 4-hours chart of EUR/USD.
- The US Building Permits in Oct 2017 increased 5.9%, much better than the forecast of +2%.
- Today in the Euro Zone, the German PPI numbers for Oct 2017 will be released which is forecasted to register an increase of 2.7% (YoY).
EURUSD Technical Analysis
The Euro made a nice upside move this past week and traded above 1.1800 against the US Dollar. The EUR/USD pair traded as high as 1.1859 before starting a downside correction.
During the upside move, there was a break above a major contracting triangle with resistance at 1.1765 on the 4-hours chart. The pair traded as high as 1.1859 before finding resistance and starting a correction.
It moved below the 23.6% Fib retracement level of the last wave from the 1.1554 low to 1.1859 high. However, the same broken triangle is now acting as a support near 1.1720 along with the 200 simple moving average (green, 4-hour).
As long as the pair is above the 1.1700 and the 50% Fib retracement level of the last wave from the 1.1554 low to 1.1859 high, it remains supported in the near term.
US Building Permits
Recently in the US, the Building Permits Change for Oct 2017 was released by the US Census Bureau, at the Department of Commerce. The forecast was slated for a rise of 2% in the Building Permits compared with the last decline of 4.5%.
However, the actual result was a lot better, as there was an increase of 5.9% in the Building Permits in Oct 2017. The last reading was also revised up from -4.5% to 3.7%.
The report added:
Privately-owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 1,297,000. This is 5.9 percent (±1.4 percent) above the revised September rate of 1,225,000 and is 0.9 percent (±1.6 percent)* above the October 2016 rate of 1,285,000.
Overall, the EUR/USD pair was pressured after the release, but it remains supported above the 1.1700-1.1720 levels in the near term.
