EURUSD – Euro Looking To Extend Gains Vs US Dollar
|Key Highlights
The Euro formed a base near 1.1120 against the US Dollar and made a nice upside move.
The EUR/USD pair broke a contracting triangle pattern on the 4-hours chart at 1.1170 to clear the path for more gains.
Today in the Euro Zone, the German business sentiment index for June 2017 will be released, which is forecasted to decrease from 114.6 to 114.4.
EURUSD Technical Analysis
It seems like the Euro has formed a good support base near 1.1100-20 against the US Dollar. The EUR/USD pair is currently trading with a positive bias, and may extend gains above 1.1200.
Looking at the 4-hours chart of EUR/USD, the pair broke a contracting triangle pattern at 1.1170. The pair even cleared the 38.2% Fib retracement level of the last decline from the 1.1295 high to 1.1120 low.
It has opened the doors for more gains, but the pair needs to break 1.1200-10 and the 100 simple moving average (H4) for further gains. Moreover, the 50% Fib retracement level of the last decline from the 1.1295 high to 1.1120 low is also at 1.1208.
So, there is a chance of a minor dip in EUR/USD back towards 1.1170 before it attempts to break the 100 SMA at 1.1210.
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