EURUSD – Euro May Climb Further Vs US Dollar On Risk Sentiment07 November, 2016 by Aayush Jindal in EURUSD, Fundamental Analysis, Market Analysis, Technical Analysis
EURUSD – Euro May Climb Further Vs US Dollar On Risk Sentiment
- The Euro was seen trading higher this past week, and moved above the 1.1050 resistance against the US Dollar.
- There was a crucial bearish trend line on the 4-hours chart of EURUSD, which was broken near 1.1050 to clear the path for more gains.
- Today, the Euro Zone Retail Sales report will be released by the Eurostat, which is forecasted to post a decline of 0.2% in Sep 2016, compared with the previous month.
- US Presidential Election: The report from the FBI clearing Hillary Clinton email probe lifted the market sentiment in the short term.
EURUSD Technical Analysis
The Euro faced a lot of buying interest lately, as it moved above the 1.10 handle against the US Dollar. The technical indicators for EURUSD are currently positive, and suggesting more gains.
During the upside move, there was a break above a crucial bearish trend line on the 4-hours chart near 1.1050, which helped the Euro in gaining traction. The pair is currently trading near the 61.8% Fib retracement level of the last decline from the 1.1250 high to 1.0850 low.
So, there is a chance of a consolidation phase before the pair starts the upside move once again.
Euro Zone Retail Sales
Today in the Euro Zone, the Retail Sales, which is a measure of changes in sales of the Euro zone retail sector will be released by the Eurostat. The market is aligned for a decline of 0.2% in Sep 2016, compared with the previous month. In terms of the yearly change, the retail sales is forecasted to increase by 1.6% in Sep 2016, compared with the same month a year ago.
Let us see how the actual results shape up, but is very less likely that the Euro could be impacted after the release.
Australia’s HIA/AiG Performance of Construction Index
In Australia, the HIA/AiG Performance of Construction Index was released by the Australian Industry Group and the Housing Industry Association. The market was not expecting any major decline in the index in Oct 2016.
However, the result was disappointing, as the HIA/AiG Performance of Construction Index declined from the last reading of 51.4 to 45.9 in Oct 2016. The Aussie dollar was not impacted much, as it continued to trade in a range against the US Dollar.