EURUSD – Euro Buyers Facing Uphill Task Vs US Dollar At 1.0620

EURUSD – Euro Buyers Facing Uphill Task Vs US Dollar At 1.0620

Key Highlights

  • The Euro recently recovered from the 1.0340 low against the US Dollar, but finding sellers near 1.0600-1.0620.
  • There is a crucial bearish trend line on the 4-hours chart of EURUSD, which is acting as a resistance near 1.0620.
  • Today in the Euro Zone, the German Trade Balance will be released by the Statistisches Bundesamt Deutschland, which is forecasted to remain stable.
  • Earlier today in Australia, the ANZ job advertisements released by the Australia and New Zealand Banking Group Limited (ANZ) posted a decline of 1.9% in Dec 2016.

EURUSD Technical Analysis

The Euro made a downside move this past week trading towards 1.0340 against the US Dollar before starting a recovery. The current recovery in EURUSD is facing a major resistance near 1.0600-1.0620.

EURUSD Technical Analysis

As mentioned, there is a crucial bearish trend line on the 4-hours chart of EURUSD, which is acting as a major hurdle for the Euro bulls around 1.0600. It is preventing an upside break, and the pair is now back below the 200 simple moving average on the same chart.

It also traded below the 23.6% Fib retracement level of the last wave from the 1.0340 low to 1.0621 high, which means there can be more declines in the short term. The next support on the downside could be around the 50% Fib retracement level of the last wave from the 1.0340 low to 1.0621 high at 1.0480.

German Trade Balance

Today in the Euro Zone, there are a few economic releases lined up. The most important one would be the Trade Balance, which is a balance between exports and imports of total goods and services will be published by the Statistisches Bundesamt Deutschland. Any disappointing reading may push the Euro further down against the US Dollar towards 1.0500 or 1.0480.

ANZ Job Advertisements

Today in Australia, the ANZ job advertisements figure was released by the Australia and New Zealand Banking Group Limited (ANZ). The market was not expecting any decline in Dec 2016 in the number of job advertisements in the major metropolitan newspapers and on the internet sites.

However, the report was negative, as there was a decline of 1.9% in Dec 2016, compared with the last increase of 1.6% (revised). However, the Aussie dollar managed to hold the ground and stayed above the 0.7300 support.



Aayush Jindal

Aayush is a Senior Forex/Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over seven years as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets.

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