- The Euro is facing a monster barrier against the US Dollar if we look at the daily chart.
- There is a major bearish trend line formed on the daily acting as a resistance along with the 100-day simple moving average.
- Many things are aligned around 1.1010-40, which may act as a barrier for buyers.
- Earlier today in Japan, the Retail Trade released by the Ministry of Economy, Trade and Industry registered a decrease of 2.5% in November 2015, compared with the preceding month (+1.1%).
The EURUSD pair managed to move higher a couple of times, but failed to gain momentum. The real reason was a major confluence area formed near 1.10. There is a bearish trend line created on the daily chart, acting as a resistance.
Moreover, the 100-day simple moving average is aligned just around the highlighted trend line and resistance area. Lastly, the 50% Fib retracement of the last drop from the 1.1496 high to 1.0541 low.
Let’s see whether buyers can clear the highlighted trend line and resistance area or not moving ahead.
Earlier during the Asian session, the Japanese Industrial Production, which measures outputs of the Japanese factories and mines was released by the Ministry of Economy, Trade and Industry. The outcome was on the lower side, as there was a decline of 1% in November 2015, compared with the preceding month. The last reading was a +1.4%.
Looking at the yearly change, there was an increase of 1.6% in November 2015, compared with the same month a year ago. It was better compared with the last decline of 1.4%. Overall, the data was mixed, and failed to help the Japanese Yen.
Looking at the Euro, the market sentiment was less affected, and it looks like the pair is consolidating before the next move.