- Euro was crushed during the past couple of sessions against the US dollar, and it looks set for more declines.
- EURUSD formed a bearish structure on the hourly chart, which was broken to ignite a downside move.
- German Gross Domestic Product released by the Statistisches Bundesamt Deutschland came in at 0.3% in the fourth quarter of 2015.
- In terms of the yearly change, there was a rise of 1.3% in the German Gross Domestic Product (w.d.a).
The Euro suffered heavy losses against the US dollar recently, and it just got worse. There was a descending channel pattern formed on the hourly chart of the EURUSD pair, which was broken to pave the way for more losses in the near term.
The EURUSD pair is well below the 100, 200 and 50 hourly simple moving averages, which is a sign of weakness. If there is a break below 1.0980, then a move towards 1.0950 is on the cards.
On the upside, the broken trend line support area may now act as a resistance.
Today the Euro Zone saw a few major releases, including 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 forecast was lined up for a growth of 0.3% in Q4 2015, compared with Q3 2015. The result matched the forecast, and in fact the yearly change was also as forecasted and came in at 1.3%.
The report stated that “the economic situation in Germany in 2015 was characterised by solid and steady growth (+0.3% in the third and fourth quarter each and +0.4% in each of the first two quarters). For the whole year of 2015, this was an average increase of +1.7% (calendar adjusted: +1.4%). The provisional result released in January 2016 has largely been confirmed“.
The Euro is under a bearish pressure, and if it increases moving ahead, there is a chance of EURUSD testing 1.0950.