Key Points
- The Euro maintained its bullish bias against the US Dollar, and moved above 1.0750.
- There was a break above a channel with resistance near 1.0775 on the hourly chart of EURUSD.
- Today in the Euro Area, the Spanish Trade balance was released by INE.
- The result was a bit disappointing, as the trade deficit was €-3.13B, compared with the last €-2.45B.
EURUSD Technical Analysis
The Euro traded higher recently against the US Dollar, and managed to clear the 1.0700 and 1.0750 resistance levels. Also, there was a break above a channel with resistance near 1.0775 on the hourly chart of EURUSD.
The pair is currently correcting from the 1.0802 high. However, it is likely to face buyers near the 23.6% Fib retracement level of the last wave from the 1.0722 low to 1.0802 high.
Moreover, the broken channel resistance near 1.0772 is also likely to act as a support. It also coincides with the 38.2% Fib retracement level of the last wave from the 1.0722 low to 1.0802 high. Overall, buying dips for a move above 1.0800 can be considered.
Spanish Trade Balance
Today in the Euro Area, the Spanish Trade balance was released by INE. The market was expecting the difference between the value of country’s exports and imports to be around €-2.8B.
The outcome was a bit disappointing, as the trade deficit was €-3.13B, compared with the last €-2.45B. Recently in the US, the Chicago Fed National Activity Index (CFNAI) for Feb 2017 was released by Federal Reserve Bank of Chicago. The result was better, as there was a rise from the last revised reading of -0.02 to 0.34 in Feb 2017.
Overall, the Euro remains supported on the downside, which is why EURUSD could trade above the 1.0800 handle in the near term.
