Home » Featured » EURUSD Facing Trend Line Resistance

EURUSD Facing Trend Line Resistance

Key Points

  • Euro gained bids recently against the US dollar to trade as high as 1.1218 before it found sellers.
  • The EURUSD pair is currently moving down, as there is a bearish trend line formed on the hourly chart, which is acting as a resistance for more gains.
  • Italian Consumer Price Index released by the Istat posted a decline of 0.2% in Feb 2016, just as the market expected.
  • Euro Area Employment Change released by the Eurostat posted a change of 0.3% in Q4, better than the forecast of 0.2%.

Technical Analysis

The Euro enjoyed a good ride against the US dollar and traded above the 1.1200 resistance area. However, it failed to retain the bullish tone, and started to move down. There is a bearish trend line formed on the hourly chart of the EURUSD pair, which acting as a catalyst for the downside move.


The pair is currently finding bids near the 100 hourly simple moving average and the 38.2% Fib retracement level of the last leg up from the 1.0823 low to 1.1218 high.

A break below the 100 MA may take the pair towards the 200 SMA. On the upside, the trend line remains a resistance.

Euro Area Employment Change

Today, the Euro Area Employment Change, which is a measure of the change in the number of employed people was released by the Eurostat. The market was expecting a change of 0.2% in Q4 2015, compared with the last quarter. However, the result was above the forecast, as the change was 0.3%.

The report added “compared with the same quarter of the previous year, employment increased by 1.2% in the euro area and by 1.0% in the EU28 in the fourth quarter of 2015 (after +1.1% and +1.0% respectively in the third quarter of 2015)”.

Overall, the EURUSD may struggle to trade higher as long as it is below the highlighted trend line and resistance area.

Share!Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+