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EURUSD – Downside In Euro Remains Supported Vs US Dollar

Key Points

  • The Euro made a solid upside run and traded towards 1.2070 against the US Dollar.
  • The EURUSD pair is currently correcting lower and finding support near 1.1950 and a bullish trend line on the hourly chart.
  • Today in the Euro Zone, the Spanish HICP for August 2017 (Prelim) was released by the National Institute of Statistics.
  • The outcome was above the forecast of +1.8%, as there was a rise in the HICP by 2% (YoY).

EURUSD Technical Analysis

The Euro rocketed higher this week and traded above 1.2000-1.2020 against the US Dollar. The EURUSD pair traded as high as 1.2071 and later started a correction. It moved down and traded below the 23.6% Fib retracement level of the last wave from the 1.1774 low to 1.2071 high.

EURUSD Technical Analysis

The pair also broke the 1.2000 handle and the 21 hourly simple moving average. At the moment, the pair is finding support near 1.1950 and a bullish trend line on the hourly chart.

Below the trend line support at 1.1950, the 50% Fib retracement level of the last wave from the 1.1774 low to 1.2071 high at 1.1923 might provide support and hold downsides in the short term.

Spanish HICP

Today in the Euro Zone, the Spanish HICP for August 2017 (Prelim) was released by the National Institute of Statistics. The market was positioned for an increase of 1.8% in the HICP compared with the same month a year ago.

The actual result was above the forecast of +1.8%, as there was a rise in the HICP by 2%. The report added that:

This indicator provides a preview of the CPI that, if confirmed, would imply an increase of one tenth in the annual rate, since in July this rate was 1.5%.It is worth nothing in this behaviour the increase in the prices of fuels (diesel and gasoline/petrol).

Overall, the EURUSD pair might resume its upside as long as it stays above the 1.1950-20 levels.

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