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Market Analysis

Home » Technical Analysis » Daily » EURUSD – Euro Heading Towards 1.1320?

EURUSD – Euro Heading Towards 1.1320?

Posted by FXTimes in Daily - May 10th, 2016 10:47 am GMT

Euro EURCAD EURGBP

Key Points

  • Euro was seen under a bearish pressure against the US Dollar, and it may continue to move down.
  • There are a couple of bearish trend lines formed on the hourly chart of EURUSD, which are acting as a resistance.
  • German Trade Balance released by the Statistisches Bundesamt Deutschland posted a trade surplus of €23.6B, compared with the forecast of €20.4B.
  • German Industrial Production on the other hand missed the forecast, and posted a rise of 0.3% only.

Technical Analysis

The Euro faced a lot of selling pressure lately vs the US Dollar and traded below the 1.1450 support area. There are a couple of bearish trend lines formed on the hourly chart of EURUSD, which are acting as a hurdle and preventing the upside move.

EURUSD

The pair is also below the 100 and 200 hourly simple moving averages, which is a bearish sign and may push the pair further down.

A break below the last swing low of 1.1368 could easily push the pair towards the 1.1320 support area.

German Trade Balance

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 slated for a trade surplus of €20.4B, but the result was positive, as the trade surplus was €23.6B.

The report added that “foreign trade balance showed a record surplus of 26.0 billion euros in March 2016. In March 2015, the surplus amounted to 23.0 billion euros. In calendar and seasonally adjusted terms, the foreign trade balance recorded a surplus of 23.6 billion euros in March 2016”.

Overall, the Euro has almost no reason to trade higher, and this is the reason why it may continue to trade down.

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