- Euro traded down against the British Pound, and it is trading near a major support area at present.
- EURGBP pair is currently struggling and if sellers step in, more losses are possible.
- Euro Area Trade Balance released by the Eurostat posted a trade surplus of €21.0B, which was less than the forecast of €22.4B.
- A break below the 200 hourly simple moving average in EURGBP could take the pair down.
The Euro declined this week against the British Pound, and traded close to the 200 hourly simple moving average. There are a couple of bearish trend lines on the hourly chart, which may act as a barrier for buyers and ignite a downside move.
Only a break above the trend line resistance could take the pair back higher may be towards the 61.8% Fib retracement level of the last leg from the 0.7795 high to 0.7735 low.
On the downside, the pair may test the all-important 0.7700 support area.
Euro Area Trade Balance
Today, the Euro Area Trade Balance, which is a balance between exports and imports of total goods and services was released by the Eurostat. The forecast was lined up for a trade surplus of €22.4B in Dec 2015. However, the outcome was a bit lower, as the Euro Area Trade Balance posted a trade surplus of €21.0B.
The report stated “first estimate for euro area (EA19) exports of goods to the rest of the world in December 2015 was €167.5 billion, an increase of 3% compared with December 2014 (€162.1 bn). Imports from the rest of the world stood at €143.2 bn, also a rise of 3% compared with December 2014 (€138.5 bn) “.
Overall, the Euro is under pressure, and if there is break below 200 SMA, then EURGBP may trade towards 0.7700.