Key Points
- The Euro has started a recovery after declining towards the 1.1730 level against the US Dollar.
- There are two bearish trend lines forming with resistance at 1.1840 on the hourly chart of EURUSD.
- Today in the Euro Zone, the German Trade Balance for June 2017 was released by the Statistisches Bundesamt Deutschland.
- The outcome was above the forecast, as there was a trade surplus of €21.2B, more than the forecast of €21.0B.
EURUSD Technical Analysis
The Euro was in a solid uptrend this past week and traded towards 1.1910 against the US Dollar. The EURUSD pair later faced sellers and moved down below the 1.1900 and 1.1880 support levels.
The pair traded as low as 1.1727 before it started recovering. It has moved above the 38.2% Fib retracement level of the last decline from the 1.1887 high to 1.1727 low.
On the upside, there are two bearish trend lines forming with resistance at 1.1840 on the hourly chart. Moreover, the 61.8% Fib retracement level of the last decline from the 1.1887 high to 1.1727 low at 1.1848 is also likely to act as a hurdle for buyers.
German Trade Balance
Today in the Euro Zone, the German Trade Balance for June 2017 was released by the Statistisches Bundesamt Deutschland. The market was positioned for a trade surplus of €21.0B, compared with the last €20.3B.
The actual result was above the forecast, as there was a trade surplus of €21.2B, more than the forecast of €21.0B. Imports of goods and services were down by 4.5 in June 2017 (MoM), whereas the market was expecting an increase of 0.2%. The report added that:
The foreign trade balance showed a surplus of 22.3 billion euros in June 2017. In June 2016, the surplus amounted to 24.5 billion euros. In calendar and seasonally adjusted terms, the foreign trade balance recorded a surplus of 21.2 billion euros in June 2017.
Overall, the EURUSD pair may correct higher in the near term, but it is most likely to face sellers near the 1.1840-50 levels.
