Key Points
- The Euro after trading as low as 0.7589 vs the British Pound started to recover.
- The pair after breaking a support trend line formed on the hourly chart founds bids near 0.7590.
- Euro Zone Business climate indicator, released by European Commission posted a rise from the last revised reading of 0.15 to 0.26 in May 2016.
- Euro Zone Consumer Confidence was also released, which remained at -7 in May 2016.
Technical Analysis
The Euro this past week traded lower vs the British Pound, and also broke a support trend line formed on the hourly chart. The EURUSD pair traded as low as 0.7589 where the Euro bulls just managed to prevent the downside, as the 61.8% Fib retracement level of the last move from the 0.7564 low to 0.7644 high came into the play.
The EURUSD pair recovered well, and currently trading above the 100 and 50 hourly simple moving average, which is a positive sign.
On the upside, the broken trend line might come into play and act as a resistance. Any further upside may find sellers near the 200 hourly SMA.
Euro Zone Consumer Climate
Today, there were a few economic releases in the Euro Zone, including the Consumer confidence and the Business climate indicator. One remained flat, and another registered a minor rise in May 2016.
The Euro Zone Business climate indicator released by European Commission posted an increase from the last revised reading of 0.15 to 0.26 in May 2016. On the other hand, the Euro Zone Consumer Confidence remained unchanged from -7 in May 2016.
Overall, the Euro was seen gaining traction during the London session, and if the current trend continues, there are chances of more gains in the near term.
