EURUSD Bull Run Has Come to an End Ahead of DEU Trade Report

Key Highlights

  • Euro lost most of its gains this past week and ended the week lower against the US Dollar.
  • EURUSD broke an important support area, which suggests that sellers are in control.
  • Today, the German Trade Balance report will be released by the Statistisches Bundesamt Deutschland, which might ignite moves in EURUSD.
  • In Japan earlier today, the Gross Domestic Product released by the Cabinet Office grew by 1% in the first quarter of 2015, compared with the last increase of 0.6%.

EURUSD – Technical Analysis

The Euro this past week traded higher versus the US Dollar to trade close to the 1.1380-1.1400 resistance area. However, after the economic release in the US the EURUSD pair fell sharply and even traded below an important bullish trend line on the hourly chart. The downside was swift, which took the price below 1.1150 support area and stalled around 1.1050.

EURUSD

The EURUSD pair even settled below the 100 hourly simple moving average, which might now act as a resistance in the near term. However, the pair managed to hold the 200 SMA, which might ignite a short-term correction. There are many resistance areas building on the way up for the pair, starting with the 23.6% Fib retracement level of last drop from the 1.1378 high to 1.1047 low.

Moreover, the 38.2% Fib level also holds the key for more upside moving ahead, but the most important one is around the 100 MA.

Japanese GDP

Earlier during the Asian session, the Japanese Gross Domestic Product, which shows the monetary value of all the goods, services and structures produced in Japan within a given period of time was released by the Cabinet Office. The outcome was on the positive side, as the Japanese GDP managed to grow by 1% in the first quarter of 2015, compared with the preceding quarter. It was above the last growth rate of 0.6%. The Japanese Yen managed to gain bids after the release and traded close to 125.30 against the US Dollar.

German Trade Balance

Today in the Euro Area, the German Trade Balance report, which represents a balance between exports and imports of total goods and services will be released by the Statistisches Bundesamt Deutschland. Any decline in trade might ignite bearish pressure on the Euro moving ahead.



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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