EUR/USD: Bulls Remain In Control
- Euro enjoyed a nasty ride towards the upside against the US dollar, as the latter one weakened a lot recently.
- EUR/USD climbed higher and broke an important resistance of 1.1400-20, which might act as a support moving ahead.
- Euro Zone Consumer Confidence released by the European Commission recently managed to post a better than expected reading of -6.8 in August 2015.
EUR/USD Technical Analysis
The US dollar struggled a lot recently against most major currencies, including the euro. The EUR/USD pair surged higher and traded above a major resistance area of 1.1400. There was a lot of buying interest noted for the pair, which helped it to gain traction. There is a bullish trend line formed on the hourly chart, which is acting as a support every time the pair moves or corrects lower.
EUR/USD Hourly Chart
One concerning thing is that the highlighted trend line is very steep, which means if sellers manage to clear it, then we might witness a short-term correction in EUR/USD. As long as the pair is above the trend line and support area more gains are likely.
On the downside, there is a support around the 23.6% Fib retracement level of the last wave from the 1.1239 low to 1.1497 high. The most important one is around the 38.2% Fib level sitting around the highlighted trend line.
On the upside, a break above the recent high of 1.1497 might call for a move towards 1.1520 where sellers might appear one more time.