Key Highlights
Euro traded higher against the US Dollar, and looks set for more gains in the near term.
A couple of recent economic releases in the US were on the negative side, which increased the bearish pressure on the greenback.
Japanese Retail Trade released by the Ministry of Economy, Trade and Industry posted an increase of 0.9% in June 2015, compared with June 2014.
EURUSD Technical Analysis
The Euro after setting a bottom around 1.0950 against the US Dollar traded higher and moved towards the 1.1100 resistance area. The EURUSD pair after topping around 1.1120 corrected lower, but found support around an important bullish trend line on the hourly chart. There was a bearish trend line formed as well, which was breached recently to set the pair for more gains in the near term.
There was a perfect rejection around the bullish trend line, as the pair bounced from the 50% Fib retracement level of the last wave from the 1.0924 low to 1.1128 high. So, we may assume that the pair completed a short-term wave and it is likely to continue trading higher in the near term.
The EURUSD pair has started to move higher once again, and it looks like the pair might trade higher and create a new weekly higher moving ahead. On the downside, the highlighted trend line may continue to act as a support and could push the pair higher. A break below the trend line might take the pair towards the 100 hourly simple moving average.
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