Key Points
- The Euro recently managed to spike higher a couple of times vs the US dollar, but found resistance.
- There is a crucial bearish trend line pattern formed on the hourly chart of the EURUSD pair, which acted as a barrier for the Euro bulls.
- France Consumer Confidence released by INSEE posted a rise from the last reading of 94 to 98 in May 2016.
- Spanish Retail Sales released by the National Institute of Statistics posted a rise of 4.1% in April 2016, more than the forecast of 3.9%.
Technical Analysis
The Euro managed to move higher vs the US Dollar recently, but it failed near a major bearish trend line pattern formed on the hourly chart. The highlighted trend line and resistance area acted as a hurdle for the bulls on many occasions and might continue to do so.
The only positive for the Euro buyers is the fact that the pair is just above the 100 hourly simple moving average.
Moreover, the pair is trading near the 50% Fib retracement level of the last leg from the 1.1127 low to 1.1215 high, which is acting as a support.
France Consumer Confidence Index
Today, the French Consumer Confidence, which measures the moods of the consumers, through an analysis of a sample of houses was released by INSEE. The market was expecting no change in the index from 94 in May 2016.
However, the result was better, as the French Consumer Confidence posted a rise to 98. The report stated that “In May, households’ opinion of their past personal financial situation is stable for the fourth consecutive month. By contrast, their opinion of their personal financial situation in the next twelve months has improved clearly: the balance has gained 4 points. However, both balances remain inferior to their long-term average”.
In short, the EURUSD pair may trade down as long as it is facing sellers near the highlighted bearish trend line.
