- Euro after trading close to the 1.1050 against the US dollar found sellers and started to move down.
- There is a bullish trend line formed on the hourly chart of the EURUSD pair, which may be cleared by sellers for another down move.
- ECB Interest Rate Decision was announced by the European Central Bank in which the central bank reduced the rates as forecasted.
- Moreover, the German Trade Balance released by the Statistisches Bundesamt Deutschland posted a trade surplus of €18.9B, compared with the forecast of €19.5B.
The Euro managed to rise against the US Dollar, but found resistance near 1.1050, and it is now moving down. There is a bullish trend line formed on the hourly chart of the EURUSD pair, which might be cleared by the sellers to take the pair down.
The pair is well below the 50 and 100 hourly simple moving average, which could encourage sellers to take the pair down.
On the downside, a support is around the 200 hourly SMA, followed by the 1.0880 levels.
German Trade Balance
Today, 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 outcome was lower, as the trade surplus was €18.9B, compared with the forecast of €19.5B in Jan 2016.
The report stated that the “foreign trade balance showed a surplus of 13.6 billion euros in January 2016. In January 2015, the surplus amounted to +15.9 billion euros. In calendar and seasonally adjusted terms, the foreign trade balance recorded a surplus of 18.9 billion euros in January 2016”.
Overall, the ECB move and the recent economic data may weigh the EURUSD pair and could take it down moving ahead.