EUR/USD Forecast: 1.1615, next bullish target

Valeria Bednarik FXStreet

The greenback is once again in sell-off mode, hit late Monday by news coming from the US as two Republican senators announced they would oppose to the Obamacare reform bill, leaving the party two votes short of the number needing to begin the debate, after another two Senators said they won't support the debate. The EUR/USD pair surged to 1.1541, its highest since May 2016, holding nearby despite the disappointing outcome of the German ZEW survey. Economic sentiment in the country is down for July, with the index at 17.5 from previous 18.6. For the whole EU, sentiment also fell, down to 35.6 from 37.7.

There are some minor reports scheduled in the US session, including exports and imports prices for June, and TIC flows for May, none of them enough to back a greenback's recovery.

In the meantime, the 4 hours chart shows that, ever after breaking higher, the pair has been consolidating above the 1.1500 threshold, with the pair far above bullish moving averages and technical indicators having lost upward strength but flat within overbought readings. The pair is anyway poised to extend its advance on a break above the mentioned high, with the next resistance in the 1.1560 region, en route to 1.1615, May 2016 monthly high. Supports today are at 1.1490, and the 1.1460 price zone, with a break below this last probably seeing the pair returning towards the 1.1400 region, hardly enough to call for an interim top.

View live chart of the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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