EURUSD – Euro Remains In A Downtrend Vs US Dollar17 October, 2016 by Aayush Jindal in EURUSD, Fundamental Analysis, Market Analysis, Technical Analysis
EURUSD – Euro Remains In A Downtrend Vs US Dollar
- The Euro faced a lot of sellers recently and declined versus the US Dollar towards 1.0940.
- There is a steep bearish trend line formed on the hourly chart of EURUSD, which may act as a resistance in the short term.
- Today, the Euro Zone CPI will be released by the Eurostat, which is forecasted to increase by 0.4% in Sep 2016, compared with Sep 2015.
- Today in the UK, the Rightmove House Price Index was released, which posted an increase of 0.9% in Oct 2016, compared with Sep 2016.
EURUSD Technical Analysis
The Euro after testing the 1.1050 resistance versus the US Dollar started a downtrend, and it looks like the EURUSD pair may continue trading lower in the short term.
The pair already tested the 1.0940 support and currently attempting to correct higher. However, the upside move may be prevented by a steep bearish trend line formed on the hourly chart.
However, the most important resistance is near 1.1000, as it was a support earlier, and now may act as a hurdle for the Euro bulls. Overall, it looks like the Euro may continue to face selling pressure, and any recovery could find offers on the upside.
UK Rightmove House Price Index
Today in the UK, the Rightmove House Price Index that provides a sample of residential property prices in the UK and shows the strength of the UK housing market was published. The market was not expecting any major increase in the index, but the outcome was better.
There was an increase of 0.9% in Oct 2016, compared with Sep 2016. In terms of the yearly change, there was an increase of 4.2% in Oct 2016, compared with Oct 2015. The report added that the “First-time buyers in danger of being marooned by rising prices cutting them off from home-ownership. Monthly jump of 3.3% (+£6,240) in price of newly-marketed property with two bedrooms or fewer. New seller asking prices now almost £20,000 (+10.5%) higher than a year ago in this sector. Higher prices mean higher deposits and repayments, negating the benefits of falling mortgage rates”.
However, there was no relief for the GBP buyers, as it remained under a bearish pressure.