- Euro moved down against the US dollar, and currently looks set for more declines.
- There is a channel pattern formed on the hourly chart, which may be broken to set the path for a move towards 1.1100.
- The EURUSD is well below the 50, 100 hourly simple moving average, calling for a break below 1.1130.
- Euro Area Construction Output released by the Eurostat posted a decline of 0.6% in December 2015, which was down from the last increase of 0.8%.
The Euro was under a lot of bearish pressure during the past couple of session, which increased its chances of heading towards the 1.10 support area. There is a channel pattern formed on the hourly chart, which may be breached during the upcoming hours and encourage sellers for a downside move.
The EURUSD pair is well below the 50, 100 and 200 hourly simple moving average, suggesting that sellers are in control.
On the upside, one might consider selling near the channel resistance trend line, which is coinciding with the 50 hourly MA.
Euro Area Construction Output
Earlier today, the Euro Area Construction Output, which is the output of the construction industry, in both the private and public sectors was released by the Eurostat. The outcome was disappointing, as there was a decline of 0.6% in December 2015, which was down from the last increase of 0.8%.
The report added that “December 2015 compared with December 2014, production in construction fell by 0.4% in the euro area and grew by 1.4% in the EU28. Average production in construction for the year 2015, compared with 2014, decreased by 1.0% in the euro area and increased by 0.8% in the EU28“.
Overall, the Euro is under pressure today, and if sellers gain traction a break lower is possible in the short term.