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Market Analysis

Home » Featured » EURUSD Facing a Tough Resistance at 1.0945-50

EURUSD Facing a Tough Resistance at 1.0945-50

Posted by FXTimes in Featured - December 9th, 2015 1:11 pm GMT

Euro EURUSD

Key Points

  • Euro managed to pop higher and currently trading near a major resistance area of 1.0945-50.
  • A break above the stated resistance area could take the pair towards 1.10.
  • German Imports of goods and services, released by Statistiches Bundesamt Deutschland posted a decline of 3.4% in October 2015, compared with the preceding month.
  • German Trade Balance posted a trade surplus of €20.8B, compared with the forecast of €20.0B.

Technical Analysis

The EURUSD pair moved higher Intraday, and it is currently trading near the last swing high of 1.0945-50, which is acting as a hurdle for buyers. There is also a trend line, preventing the upside break as highlighted in the chart attached.

EURUSD

A break above the highlighted trend line and resistance area may call for a move towards the 1.10 handle where sellers might appear. On the downside, an initial support can be around 1.0920-10, followed by 1.0900.

The hourly RSI is above the 50 level and currently around the overbought levels, which may ignite a correction moving ahead.

German Trade Balance

Today, the German Trade Balance, which is a balance between exports and imports of total goods and services was released by the Statistisches Bundesamt Deutschland. The forecast was lined up for a trade surplus of €20.0B in October 2015, compared with the preceding month. However, the outcome was positive, as the trade surplus came in at €20.8B.

However, both imports and exports were on the negative side. The report stated that “German exports increased by 3.3% and imports by 3.0% in October 2015 year on year. Compared with September 2015, exports were down by 1.2% and imports by 3.4% in calendar and seasonally adjusted terms”.

The EURUSD pair is under bullish pressure currently, but no doubt 1.0950 holds the key for more gains in the near term.

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