Filed Under:  Technical Analysis

EURUSD – Is This A Break Down In Euro?

8th August 2016   ·   0 Comments

Key Highlights

  • The Euro closed on a negative note against the US Dollar, and may continue to trade lower.
  • There was a crucial bullish trend line formed on the 4-hours chart of the EURUSD pair, which was broken on the last Friday.
  • Today, the German Industrial Production will be released by the StatistischesBundesamt Deutschland.
  • The forecast is slated for a rise of 0.7% in July 2016, compared with the decline of 1.3%.

EURUSD Technical Analysis

The Euro fell this past week against the US Dollar after better than expected US NFP figure. It looks like the EURUSD pair broke down and may continue to trade further lower.

EURUSD

There was a bullish trend line formed on the 4-hours chart of the EURUSD pair, which was broken during the downside move. Furthermore, the pair also closed below the 200 simple moving average (H4 chart), which is now acting as a resistance for a recovery.

One positive sign is the fact that the pair is currently above the 100 simple moving average (H4 chart), which is acting as a support area and preventing further declines. If the Euro bears manage to break it, then there is a chance of more losses in the EURUSD pair moving ahead. The H4 RSI is now below the 50 level, which is a not a good sign for the bulls.

German Industrial Production

Today, there are no major events in the Euro Zone. The only one release to watch out will be the German Industrial Production. It measures outputs of the German factories and mines and will be released by the StatistischesBundesamt Deutschland.

The forecast is slated for a rise of 0.7% in July 2016, compared with the previous month.

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