- The Euro moved down against the US Dollar recently and looks set for more losses in the near term.
- There is a descending channel pattern formed on the hourly chart of the EURUSD pair, which is taking the pair down.
- The German Retail Sales report was released by the Statistisches Bundesamt Deutschland.
- The outcome was positive with a rise of 1.7% in July 2016, more than the forecast of 0.5%.
EURUSD Technical Analysis
The Euro recently faced a lot of bearish pressure versus the US Dollar and traded towards the 1.1129 level. The EURUSD pair is currently in a downtrend and following a descending channel pattern formed on the hourly chart.
The channel resistance is also aligned with the 21 hourly simple moving average. So, it won’t be easy for the Euro buyers to clear the resistance and take the pair higher.
There is a high probability of the pair breaking the channel support area and trading lower in the near term.
German Retail Sales
Today during the London session, the German Retail Sales, which is a measure of changes in sales of the German retail sector was released by the Statistisches Bundesamt Deutschland.
The forecast was lined up for a rise of 0.5% in July 2016, compared with the previous month. However, the outcome was positive, as there was an increase of 1.7%. The report highlighted that the “retail turnover in July 2016 in Germany decreased in real terms 1.5% and in nominal terms 1.2% compared with the corresponding month of the previous year. The number of days open for sale was 26 in July 2016 and 27 in July 2015”.
Overall, the Euro may gain a few pips, but likely to remain under a bearish pressure versus the US Dollar.