EURUSD Faces an Uphill Task30 November, 2015 by Aayush Jindal in EURUSD, Fundamental Analysis, Market Analysis, Technical Analysis
EURUSD Faces an Uphill Task
- Euro continued to decline against the US Dollar, and fell close to the 1.0550 area.
- There is a bearish trend line formed on the 4-hours chart, acting as a resistance for an upside move.
- In Japan, the Industrial Production released by the Ministry of Economy, Trade and Industry posted a decline of 1.4% in October 2015 that was more than the last decline of 0.8%.
EURUSD Technical Analysis
The Euro stayed under the bearish pressure this past week, and continued to move lower against the US Dollar. The EURUSD pair broke the last swing low of 1.0600 and traded towards 1.0550. Currently, there is no relief for buyers, as the pair looks set for more losses.
Moreover, there is a bearish trend line formed on the 4-hours chart, which may prevent an upside move in the near term. A break below the recent low of 1.0560 may take the pair further lower.
On the upside, an initial resistance lies near 1.0610-20, followed by the 1.0640 pivot area.
Today, in the Euro Zone, Germany consumer price index will be released by the Statistiches Bundesamt Deutschland that measures the average price change for all goods and services purchased by households for consumption purposes. The market is expecting an increase of 0.4% in November 2015, compared with the same month a year ago. The market expectation is on the higher side, and if it fails to match with the outcome, then the shared currency may come under bearish pressure in the near term.
Japanese Industrial Production
Earlier during the Asian session, there were many economic releases lined up in Japan. The Industrial Production, which measures outputs of the Japanese factories and mines was released by the Ministry of Economy, Trade and Industry. The market was not expecting it to decline by more than 1%, but the outcome was disappointing. There was a decline of 1.4% in October 2015, compared with the same month a year ago. It was higher when compared with the last decrease of 0.8%.
On the other hand, the Retail Trade, which captures the aggregate sales made through a business location was released by the Ministry of Economy, Trade and Industry. The outcome was positive, as there was an increase of 1.1% in October 2015.