EURUSD – 1.0760 is a Pivot Zone24 April, 2015 by Aayush Jindal in EURUSD, Fundamental Analysis, Market Analysis, Technical Analysis
- Euro surged higher recently against the US dollar, but the EURUSD pair was contained around 1.0840 by sellers.
- EURUSD has a major pivot area around 1.0750-60 area where buyers might take a stand to protect more losses in the near term.
- Today, the German business sentiment index will be released by the CESifo Group, which is expected to increase from 107.9 to 108.4 in April 2015.
The Euro managed to break an important resistance area against the US dollar Intraday and traded towards the 1.0840 level. In the process, the EURUSD pair broke a critical bearish trend line on the hourly chart but found sellers around one more resistance trend line as highlighted in the chart attached.
The pair is currently correcting lower and heading back towards the broken trend line, which is now coinciding with the 38.2% fib retracement level of the last leg from the 1.0660 low to 1.0840 high. There is a chance that it might find buyers around the mentioned support area and trade back higher.
If the pair fails to hold the 1.0760 support area, then a test of the 100 hourly moving average might be possible, which is sitting below the 50% fib level. The hourly RSI is heading towards the 50 level, which aligns perfectly with the highlighted support. On the upside, the 1.0820-40 area remains a major barrier for buyers in the near term.
Japanese Corporate Service Price Index
There was a low-risk event lined up during the Asian session, as the Japanese Corporate Service Price Index (CSPI) that helps in evaluating the prices of services traded among companies was released by the Bank of Japan. The market was expecting it to increase by 3.3% in March 2015, compared to the same month a year ago. However, the outcome was below the forecast, as Japanese Corporate Service Price Index registered a rise of 3.2%.
There was not much action noted for the Japanese yen pairs, but overall the yen was seen on the top. The USDJPY pair is trading lower and it looks like it might continue to trade lower in the near term.
Upcoming Economic Releases
Later during the London session, the German business sentiment index will be released by the CESifo Group. The forecast is of an increase from 107.9 to 108.4 in April 2015. Let us see how it shapes up and affects the Euro in the short term.