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Market Analysis

Home » Technical Analysis » Daily » EURUSD Testing Important Support Area

EURUSD Testing Important Support Area

Posted by FXTimes in Daily - January 29th, 2016 9:05 am GMT

euro eurusd

Key Points

  • Euro collapsed against the US Dollar during the past couple of sessions, and currently trading near a major support area.
  • There are a couple of important bullish trend lines formed on the hourly chart, which area acting as a support for the EURUSD pair.
  • German Retail Sales report was released by the Statistisches Bundesamt Deutschland today. <br>
  • The outcome was disappointing, as the German Retail Sales declined by 0.2% in Dec 2015, compared with the preceding month.

Technical Analysis

The Euro after failing near the 1.0970 area traded lower against the US dollar. The EURUSD pair traded down heavily and currently trading near a couple of important bullish trend lines formed on the hourly chart.

EURUSD

The 100 and 200 hourly simple moving averages are also below the highlighted trend lines and support area. So, we can say that the 1.0880-50 support area holds a lot importance for EURUSD moving ahead.

On the upside, the 1.0920 can be seen as an immediate resistance, followed by the 1.0950 level.

German Retail Sales

Today, the Retail Sales, which is a measure of changes in sales of the German retail sector and shows the performance of the retail sector was released by the Statistisches Bundesamt Deutschland. The forecast was lined up for an increase of 0.5% in December 2015, compared with the preceding month. However, the result was disappointing, as the performance of the retail sector declined by 0.5%.

In terms of the yearly change, there was a rise of 1.5%, which was again lower compared with the forecast of 2%.

The EURUSD pair remains at a risk of a break down. If sellers succeed in breaking the highlighted trend lines and support area, the more losses are likely.

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