EURUSD – Euro Remains In Downtrend Vs US Dollar

Key Highlights

  • Euro declined heavily vs the US Dollar and continued to find offers whenever the Euro bulls attempted a recovery.
  • There is a bearish trend line formed on the hourly chart of the EURUSD pair, which is acting as a resistance.
  • In the Euro Zone, the Germany consumer price index will be released by the Statistiches Bundesamt Deutschland, which is forecasted to rise by 0.1% in May 2016.
  • The Euro Zone Consumer Confidence will also be released today by the European Commission, which is forecasted to remain unchanged at -7 in May 2016.

EURUSD Technical Analysis

The Euro after trading above the 1.1400 level vs the US dollar started to move down and declined heavily. There is a bearish trend line formed on the hourly chart of the EURUSD pair, which is acting as a hurdle for the Euro bulls every time they attempt a recovery.

EURUSD

The pair is currently well below the 100 and 200 hourly simple moving average, suggesting that the Euro sellers are in control and may push EURUSD further down.

If the pair moves down from the current levels, then it can be seen as a buying opportunity around the 100-day SMA.

German CPI

Today in the Euro zone, there are a couple of important releases lined up, including the German CPI and the Consumer Confidence. The most important one will be the Germany consumer price index, which measures the average price change for all goods and services purchased by households for consumption purposes by the Statistiches Bundesamt Deutschland.

The market is expecting a rise of 0.1% in the CPI in May 2016, compared with the same month a year ago. In terms of the monthly change, the forecast is of an increase of 0.3%.

Australian HIA New Home Sales

Today in Australia, the HIA New Home Sales, which presents the number of new home sales in Australia. It indicates the housing market condition was released by the Housing Industry Association. The market was not expecting any decline in the sales in April 2016.

However, the HIA New Home Sales posted a decline of 4.7% in April 2016, compared with the previous month in which there was a rise of 8.9%.



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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