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EURUSD – Euro Heading Towards Monster Resistance Vs US Dollar

Key Points

  • The Euro climbed higher today and moved above the 1.0970 resistance against the US Dollar.
  • The EURUSD pair is currently approaching a monster resistance at 1.1000 on the hourly chart.
  • In the US recently, the NAHB Housing Market Index for May 2017 was released by the National Association of Home Builders.
  • The result was above the forecast, as the NAHB Housing Market Index increased from 68 to 70.

EURUSD Technical Analysis

The Euro found support at 1.0840 against the US Dollar and started a nice uptrend recently. The EURUSD pair moved high and cleared the 21 hourly simple moving average and the 1.0970 resistance to post good intraday gains.

EURUSD Technical Analysis

The pair also closed above the 1.236 extension of the last drop from the 1.0935 high to 1.0840 low, and now approaching a monster resistance at 1.1000 on the hourly chart.

The highlighted resistance area also coincides with the 1.618 extension of the last drop from the 1.0935 high to 1.0840 low. So, a break above 1.10 may play a key role for the next move in EURUSD in the short term.

NAHB Housing Market Index

Recently in the US, the NAHB Housing Market Index for May 2017 was released by the National Association of Home Builders. The market was expecting no change from the last reading of 68 in May 2017.

The outcome was above the forecast, as the NAHB Housing Market Index increased from 68 to 70. Commenting on the report, the NAHB Chairman, Granger MacDonald, stated “This report shows that builders’ optimism in the housing market is solidifying, even as they deal with higher building material costs and shortages of lots and labor”.

Overall, the EURUSD pair was not affected much, trading with a positive bias, and there are high chances of it breaking 1.1000 for further gains in the near term.

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