EUR/USD - Can Euro Resume Uptrend Above 1.2000 Vs US Dollar?
The Euro struggled to move past 1.2100 recently against the US Dollar and started a correction. The EUR/USD pair corrected to 1.1840 and currently attempting to move back above 1.2000.
During the downside move from 1.2092, the pair broke a couple of important supports levels. The 1.2000 support, the 100 hourly simple moving average (H4) and 1.1900 were breached. There was also a break below a crucial bullish trend line with support near 1.1900 on the 4-hours chart.
The pair traded as low as 1.1837 where the 200 SMA (H4) and another bullish trend line prevented declines. The pair recovered well and currently trading above 1.1880 and the 100 SMA (H4).
A proper close above the 50% Fib retracement level of the last decline from the 1.2092 high to 1.1837 low is needed for a push above 1.2000 in the near term. On the downside, the 100 SMA (H4), the trend line support at 1.1900 and the 200 SMA (H4) are important hurdles for sellers.China’s House Price Index and New Loans
Today in China, there were a few low-risk economic releases like the house price index and new loans lined up for August 2017. The house price index released by the National Bureau of Statistics was forecasted to increase 9% in August 2017.
However, the result was less than the forecast as the HPI increased 8.3%. On the other hand, the new loans figure released by People’s Bank of China was forecasted to post 900.0B. The actual was better, as the new loans were 1,090.0B, compared with the forecast of 900.0B and more than the last 825.5B.
The M2 Money Supply increased 8.9% in August 2017, compared with the same month a year ago. It was less than the last +9.2% and below the forecast of +9.1%.
Overall, the results were mixed and did not impact the market sentiment for EUR/USD above 1.1900. If the pair continues to hold the 1.1900 support and the 200 SMA (H4), it might continue to move higher.