Euro Eyes German Employment Report and Consumer Confidence

Key Highlights

  • Euro buyers managed to gain traction against the US dollar, but awaits key releases in the Euro zone for further action.
  • German Unemployment Change report will be published by the German Statistics Office, which is expected to register a reading of -10K.
  • Euro zone Consumer Confidence will also be released by the European Commission, which is expected to rise from -8.5 to -6.7.
  • EURUSD is currently testing a major resistance area around the 1.1380 level.

German Unemployment Report

Today during the London session, as the German unemployment change and rate report will be published by the German Statistics Office. The forecast is lined up for the unemployment change to be at -10K in February 2015, compared to the preceding month in which the change was of -8K. Furthermore, the German unemployment rate is expected to remain stable at 6.5%.

There is another releases lined up in the Euro area, which has the potential to cause moves in the Euro. The Euro zone Consumer Confidence will also be released by the European Commission. The market is expecting a minor rise form the last reading of -8.5 to -6.7 in February 2015. Moreover, the economic sentiment indicator on the other hand is expected to gain from 101.2 to 101.9.

Technical Analysis

The Euro traded higher recently against the US dollar, but failed to move above a major barrier in the form of a bearish trend line on the hourly chart. However, there are some positives to note from the chart, as the EURUSD pair is now comfortably placed above the 100 hour moving average. Moreover, the Euro buyers managed to pierce the 50% fib retracement level of the last drop from the 1.1449 high to 1.1278 low.

EURUSD  02.26.2015

On the downside, the 100 MA might act as a support and on the upside a break above the highlighted trend line could encourage the Euro buyers moving ahead.

New Zealand Trade Balance Report

Earlier today, the New Zealand Trade balance report was released by Statistics New Zealand. The outcome was on the positive side, as the trade deficit was of $-1.41B in January 2015, compared to the same month a year ago. In terms of the monthly change, there was a trade surplus of $56M whereas the market was expecting a deficit.

The report mentioned that the quantity of dairy products exported increased by 2.9%, which was mainly due to cheese and butter. However, on the other hand, the quantity of milk powder exported decreased by 3.1%.

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade 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, commodities, Bitcoin and Ethereum markets.

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