Key Points
- The Euro remained in a downtrend against the US Dollar, and looks set for more losses.
- There is a bearish trend line formed on the hourly chart of the EURUSD pair, which is acting as a hurdle for the bulls.
- Today in the Euro Zone, the Current Account was released by European Central Bank.
- The result was above the forecast, as there was a surplus of €30.8B, more than the forecast of €24.9B in May 2016.
Technical Analysis
The Euro traded lower against the US Dollar recently, and tested the 1.0980 support level. The EURUSD pair remains in a downtrend and currently following a bearish trend line formed on the hourly chart.
The pair is also below the 21 hourly simple moving average, which is a bearish sign. In short, there are many negative signs for the pair and may push it further down.
A break and close below the recent low of 1.0978 may call for a move towards the 1.0950 level.
Euro Zone Current Account
Today in the Euro Zone, Current Account, which is a net flow of current transactions, including goods, services, and interest payments into and out of the Euro-Zone was released by European Central Bank.
The market was expecting a trade surplus of €24.9B in May 2016, but the result was positive, as it came in at €30.8B. The report added that the “current account of the euro area recorded a surplus of €30.8 billion in May 2016 (see Table 1). This reflected surpluses for goods (€30.6 billion), services (€5.9 billion) and primary income (€3.2 billion), which were partly offset by a deficit in secondary income (€8.9 billion).”
However, the Euro buyers were not impressed, as a result, there are chances of more losses in EURUSD.
