Key Points
- Euro climbed higher against the US dollar during the past couple of sessions, and broke a major resistance area.
- There was a bearish trend line formed on the hourly chart of the EURUSD pair, which was broken recently.
- German Retail Sales released by the Statistisches Bundesamt Deutschland posted a rise of 0.7% in March 2016, which was less than the forecast of 2%.
- In terms of the monthly change, there was a decline of 1.1% in the German Retail Sales.
Technical Analysis
The Euro enjoyed a decent upside move against the US Dollar recently, and traded above the 1.1350 resistance area. There was a break above a bearish trend line on the hourly chart of the EURUSD pair as well, suggesting the strength of the move.
The pair is currently attempting a minor correction, but it may find bids near the broken trend line and resistance zone.
On the upside, the most important resistance is near 1.1400, which must be broken during the upside drift.
German Retail Sales
Today, the German Retail Sales, which is a measure of changes in sales of the German retail sector was released by the Statistisches Bundesamt Deutschland. The forecast was slated for a rise of 2% in the sales in March 2016, compared with March 2015. However, the result was disappointing, as there was a rise of 0.7% only.
When we consider the monthly change, then the German Retail Sales posted a decline of 1.1%. The report added that “when adjusted for calendar and seasonal variations (Census-X-12-ARIMA), the March turnover was in real terms 1.1 % and in nominal terms 0.9% smaller than that in February 2016”.
Overall, there may be a minor dip in the EURUSD pair, but it remains in an uptrend in the short term.
