EURUSD – Sellers Eye Break and Downside Move

EURUSD – Sellers Eye Break and Downside Move

Key Highlights            

  • Euro traded higher this past week, but the upside move remains at a risk as sellers started to step in.
  • The EURUSD pair has formed a bullish trend line on the hourly chart, which is currently providing support.
  • Today, a low risk event, which is the Sentix Investor Confidence will be released by the Sentix GmbH.
  • Moreover, the Spanish Industrial Output will be released by the National Institute of Statistics, which is forecasted to increase by 4.3%.

EURUSD Technical Analysis

The Euro after trading higher this past week against the US Dollar found resistance near the 1.1240 levels. The EURUSD pair is currently moving down, and finding bids near a bullish trend line on the hourly chart.

EURUSD

The pair opened with a bearish bias this week, and it would be interesting to see if the trend line support area holds or not. A break below it may call for more losses, taking the pair towards the 1.1100 area.

On the upside, an initial resistance could be around the 50% Fib retracement level of the last leg from the 1.1243 high to 1.1107 low.

Spanish Industrial Output

Today, there are no major market moving events lined up in the Euro Zone.  Some low risk events are Spanish Industrial Output and the Sentix Investor Confidence.  The Spanish Industrial Output, which shows the volume of production of Spanish industries such as factories and manufacturing will released by the National Institute of Statistics.

The forecast is lined up for an increase of 4.3% in December 2015, compared with the same month a year ago. If the Spanish Industrial Output fails to meet the forecast, then there is a chance of the Euro declining in the near term.

Japanese Current Account

Today in Japan, the Current Account i.e. a net flow of current transactions, including goods, services, and interest payments into and out of Japan was released by the Ministry of Finance. The market was expecting a reading of ¥987.0B in December 2015. The outcome was a bit lower compared with the forecast, as the Japanese Current Account came in at ¥960.7B.

Overall, the EURUSD pair remains at a risk of a break lower, and we need to keep an eye on the trend line and support area.



Mar