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Market Analysis

Home » Technical Analysis » Daily » EURUSD – Euro Faces Tough Resistance on the Way to Recovery

EURUSD – Euro Faces Tough Resistance on the Way to Recovery

Posted by FXTimes in Daily - November 24th, 2016 9:14 am GMT

euro eurusd

Key Points           

  • The Euro dived recently against the US Dollar and traded as low as 1.0515.
  • Before the downside move, the EURUSD pair broke an ascending channel on the hourly chart, which may now act as a resistance.
  • Today during the EU session, the German Gross Domestic Product was released by the Statistisches Bundesamt Deutschland.
  • The outcome was as forecasted, as there was a rise of 0.2% in the GDP in Q3 2016.

EURUSD Technical Analysis

The Euro declined recently against the US Dollar and traded towards the 1.0500 handle. The EURUSD pair after trading as low as 1.0515 started to correct higher, and testing the 23.6% Fib retracement level of the last decline from the 1.0645 high to 1.0515 low.

EURUSD Technical Analysis

However, there is a major resistance on the way up near 1.0600, coinciding with a broken ascending channel on the hourly chart of EURUSD.

The 21 hourly simple moving average, and the 61.8% Fib retracement level of the last decline from the 1.0645 high to 1.0515 low are also around the same resistance.

German Gross Domestic Product

Today during the London session, the Gross Domestic Product, which is a measure of the total value of all goods and services produced by Germany was released by the Statistisches Bundesamt Deutschland.

The market was expecting an increase of 0.2% in Q3 2016, compared with the previous quarter. The result was as forecasted, as the German GDP grew 0.2%. The report stated that the” gross domestic product (GDP) increased 0.2% – upon price, seasonal and calendar adjustment – in the third quarter of 2016 compared with the previous quarter. In the first half of the year, the GDP had increased somewhat more, by 0.4% in the second quarter and 0.7% in the first quarter”.

Overall, there is a chance that the EURUSD pair may correct higher, but it may face a lot of hurdles on the way up near 1.0600.

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