- Euro recovered well after trading as low as 1.0780 against the US dollar.
- The EURUSD pair is trading higher and facing sellers near the 50 simple moving average on the 4-hours chart.
- The EURUSD pair test the 200 MA (H4) moving ahead, which may act as a resistance.
- French Consumer Confidence released by INSEE posted a minor increase from the last reading of 96 to 97 in Jan 2016.
The EURUSD pair enjoyed a decent recovery during the past couple of sessions. The 1.0780 support area acted as a barrier for sellers and pushed the pair up. The pair cleared the 100 simple moving average on the 4-hours chart, and currently testing the 50 MA, which is coinciding with the 50% fib retracement level of the last drop from the 1.0977 high to 1.0779 low.
A break higher may take the pair towards the 200 MA (H4), which may play a major role moving ahead.
On the upside, there is a major confluence of a couple of bearish trend lines as well, which can serve as a barrier for buyers.
France Consumer Confidence
Earlier today, the French Consumer Confidence, which measures the moods of the consumers, through an analysis of a sample of houses was released by INSEE. The forecast was lined up for no change in the index from 96 in Jan 2016. However, the outcome was positive, as there was a minor increase from the last reading of 96 to 97 in Jan 2016.
The report added that the “households’ opinion of their personal financial situation was virtually stable. The balance of opinion regarding the past changes gained 1 point, while the one of future changes lost 1 point. These two balances remained below their long-term average”.
Overall, there is a chance that the EURUSD pair may trade higher, but we cannot discard that 200 MA (H4) presents a challenge to buyers.