Key Points
- The Euro after a huge gap up against the US Dollar found resistance near 1.0900.
- The EURUSD pair is currently forming a contracting triangle pattern with resistance at 1.0880 on the hourly chart.
- Recently in the US, the Chicago Fed National Activity Index (CFNAI) for March 2017 was released by Federal Reserve Bank of Chicago.
- The outcome was below the forecast, as there was a decline in the index from the last revised reading of 0.27 to 0.08 in March 2017.
EURUSD Technical Analysis
The Euro made a solid rise starting this week against the US Dollar, and traded as high as 1.0900 where it faced sellers. The EURUSD pair moved down, and tested the 38.2% Fib retracement level of the last wave from the 1.0686 low to 1.0900 high.
Later, the pair started a consolidation, and formed a contracting triangle pattern with resistance at 1.0880 on the hourly chart.
The pair is attempting a break above the triangle resistance at 1.0880. If it gets success, there can be a retest of 1.0900, followed by a break towards 1.0940.
Chicago Fed National Activity Index
The US recently saw the release of the Chicago Fed National Activity Index (CFNAI) for March 2017 by Federal Reserve Bank of Chicago. The forecast was lined up for the index to remain around 0.30 in March 2017, compared with the last 0.34.
The result was below the forecast, as there was a decline in the index to 0.08 in March 2017. The last reading was also revised down from 0.34 to 0.27. So, overall the index posted a decline in March 2017. The report stated that “Led by slower growth in employment-related indicators, the Chicago Fed National Activity Index (CFNAI) moved down to +0.08 in March from +0.27 in February. Two of the four broad categories of indicators that make up the index decreased from February, and one category made a negative contribution to the index in March”.
Overall, the EURUSD may soon break the 1.0880 resistance and attempt to move past 1.0900 in the near term.
