EU Facing Uphill Task, EUR Moves Lower Against USD And GBP16 March, 2015 by Aayush Jindal in Market Analysis
- Euro continued to move lower against the US dollar and the British pound as sellers gain control.
- In the UK, the Rightmove House Price was released, which posted an increase of 1% in March 2015.
- EURGBP found support around the 0.7000 handle recently, but facing an important resistance on the upside.
UK Rightmove House Price
Earlier today, the UK Rightmove House Price representing the strength of the UK housing market, which can be considered as the economy as a whole due to property prices’ sensitivity to changes in the business cycle was released. The outcome was a bit lower compared to the last time gain of 2.1%. The UK Rightmove House Price increased by 1% in March 2015.
When we consider the yearly change, then the Rightmove House Price rose by 5.4% in March, compared to the last gain of 6.6%. The report stated that “the average new seller asking price just £30 below June 2014 record as high demand reduces the impact of tighter lending controls introduced in the April 2014 Mortgage Market Review”. Moreover, the number of newly-listed properties increase by around 3.2% in March 2015, compared to last month.
As mentioned, the EURGBP pair recently fell close to the 0.70 support area where the Euro buyers just managed to hold the downside. The pair is currently attempting to make a move back higher, but there is a bearish trend line on the 4 hour chart, which is likely to act as a resistance for the pair.
The 50% fib retracement level of the last drop from the 0.7285 high to 0.7012 low is also around the highlighted trend line. So, in short the Euro buyers might struggle around the 0.7180 level moving ahead. The 4-hour RSI is just below the 50 level marking congestion around the mentioned area. On the downside, the 0.7100 is an immediate support in the near term.
US Industrial Production
Today, during the NY session the US Industrial Production will be released by the Board of Governors of the Federal Reserve. The forecast is slated for an increase 0.3% in February 2015, compared to the preceding month. During the last release production gained by 0.2%. Let us see how the outcome shapes up this time, as the US dollar is simply unstoppable at the moment.