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EURUSD – Euro Remains Buy On Dips Vs US Dollar

Key Points

  • The Euro traded higher towards 1.1830 against the US Dollar and currently correcting lower.
  • There is a major connecting bullish trend line with support at 1.1765 forming on the hourly chart of EURUSD.
  • Recently in the US, the Chicago Fed National Activity Index (CFNAI) for July 2017 was released by Federal Reserve Bank of Chicago.
  • The outcome was below the forecast, as there was a decline from the last revised reading of 0.16 to -0.01.

EURUSD Technical Analysis

The Euro after trading as low as 1.1665 against the US Dollar found support and started an upside move. The EURUSD pair slowly moved higher and broke the 1.1720 resistance along with the 21 hourly simple moving average.

EURUSD Technical Analysis

The pair traded as high as 1.1828 and currently correcting lower. It is testing the 23.6% Fib retracement level of the last wave from the 1.1732 low to 1.1828 high.

On the downside, there is a major connecting bullish trend line with support at 1.1765 forming on the hourly chart of EURUSD, which is positioned with the 21 hourly simple moving average. Moreover, the 61.8% Fib retracement level of the last wave from the 1.1732 low to 1.1828 high is also at 1.1769.

Chicago Fed National Activity Index

Recently in the US, the Chicago Fed National Activity Index (CFNAI) for July 2017 was released by Federal Reserve Bank of Chicago. The market was positioned for a minor decline from the last reading of 0.13 in July 2017.

The actual result was below the forecast, as there was a decline from the last revised reading of 0.16 to -0.01. The report stated that:

Three of the four broad categories of indicators that make up the index decreased from June, and three of the four categories made negative contributions to the index in July. The index’s three-month moving average, CFNAI-MA3, moved down to –0.05 in July from +0.09 in June.

Overall, the EURUSD pair might correct lower, but remains supported near 1.1790 and 1.1770 on the downside.

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