- Euro remained stable today, and it looks like gaining traction against the US Dollar.
- There is a major support trend line formed on the hourly chart, which may act as a buy zone for the EURUSD pair.
- German Industrial Production reported by the Statistisches Bundesamt Deutschland came in at -0.3% in November 2015, compared with the expectation of +0.5%.
- German Trade Balance was also reported, which registered a trade surplus of €19.7B in November 2015, which was lower than the market forecast of €20.0B.
The EURUSD after creating a short-term top near 1.0950 moved lower and currently testing the 38.2% Fib retracement level of the last leg from the 1.0720 low to 1.0950 high. There is a major support trend line formed on the hourly chart, which may act as a barrier for sellers and a buy area.
On the upside, the 1.0900 area is an immediate resistance, followed by the 1.0920 level. Any further gains may take the pair towards the last high of 1.0950.
The hourly RSI is above the 50 level, which is a bullish sign for bulls.
German Trade Balance
Today, in the Euro Zone the German Trade Balance, highlighting a balance between exports and imports of total goods and services was reported by the Statistisches Bundesamt Deutschland. The market was positioned was a trade surplus of €20.0B in November 2015, but the outcome was a touch lower. The German Trade Balance registered a trade surplus of €19.7B.
The report stated that “foreign trade balance showed a surplus of 20.6 billion euros in November 2015. In November 2014, the surplus amounted to 17.4 billion euros. In calendar and seasonally adjusted terms, the foreign trade balance recorded a surplus of 19.7 billion euros in November 2015”.
Overall, the trade balance missed the mark, but was not disappointing. The EURUSD if corrects further lower, then may find support near the 1.0820 level.