Key Points
- Euro after trading as high as 0.8377 against the British Pound started a correction.
- During the upside move, the EURGBP pair broke a resistance trend line, which can now act as a support area.
- German Unemployment Change published by the German Statistics Office posted a change of -6K in June 2016, better than the forecast of -5K.
- The German Unemployment Rate remained stable at 6.1% in June 2016, just as the market expected.
Technical Analysis
The Euro enjoyed a decent run against the British Pound and traded as high as 0.8377. As mentioned, the EURGBP pair also broke a resistance trend line during the upside move. The pair is currently moving down, but may find buyers around the 23.6% Fib retracement level of the last leg from the 0.7599 low to 0.8377 high.
Moreover, the pair is above the 100 and 200 simple moving averages on the 4-hours chart, which is a positive sign for the bulls.
On the upside, an initial resistance is around the 0.8300 level, followed by the 0.8340 area.
German Unemployment Change
Today in the Euro Zone, the Unemployment Change, which is a measure of the absolute change in the number of unemployed people in Germany using seasonally adjusted data was published by the German Statistics Office. The market was expecting a change of -5K in June 2016. However, the result was better, as there was a change of -6K.
Moreover, the German Unemployment Rate remained stable at 6.1% in June 2016, just as the market expected. Overall, the report was positive, which may help the Euro. There were a couple of other releases as well, which were on the positive side.
The Euro may decline a few pips against the British Pound, but may find buyers on the downside.
