Key Points
- The Euro is currently consolidating against the US Dollar, and attempting to break the 21 hourly simple moving average.
- There is a contracting triangle pattern formed on the hourly chart of the EURUSD pair, which the Euro bulls are attempting to break.
- Earlier today, the German Trade Balance was released by the Statistisches Bundesamt Deutschland.
- The outcome was a bit disappointing, as there was a trade surplus of €21.7B in June 2016, less than the forecast of €22.1B.
Technical Analysis
The Euro after finding bids near 1.1070 against the US dollar on many occasions gained momentum and trade higher. The Euro bulls are currently attempting to take the EURUSD pair above a contracting triangle pattern formed hourly chart.
Moreover, the 21 hourly simple moving average is also acting as a resistance area for the Euro bulls and preventing an upside ride.
If the bulls succeed in breaking the 21 hourly simple moving average, then more gains are likely in the near term.
German Trade Balance
Earlier today during the London session, the German Trade Balance, which is a balance between exports and imports of total goods and services was released by the Statistisches Bundesamt Deutschland.
The forecast was slated for a trade surplus of €22.1B in June 2016, but it came in at €21.7B. Moreover, the report added that “the current account of the balance of payments showed a surplus of 26.3 billion euros in June 2016, which takes into account the balances of trade in goods including supplementary trade items (+26.8 billion euros), services (–2.7 billion euros), primary income (+4.4 billion euros) and secondary income (–2.1 billion euros). In June 2015, the German current account showed a surplus of 25.3 billion euros”.
The Euro may gain bids and trade higher in the near term against the US Dollar if the current momentum stays intact.
