Key Points
- The Euro after trading as low as 1.0642 against the US Dollar started a recovery, and currently looking for an upside break.
- The EURUSD pair is currently attempting to break a major bearish trend line at 1.0700 on the hourly chart.
- Today in the Euro Zone, the German Trade Balance was released by the Statistisches Bundesamt Deutschland.
- The result was on the lower side, as the trade surplus was €18.4B in Dec 2016, compared with the forecast of €21.4B.
EURUSD Technical Analysis
The Euro remained in a downtrend this week against the US Dollar until it found support near 1.0640. The EURUSD pair started a recovery, and moved above the 1.0680 level and the 21 hourly simple moving average.
At the moment, the pair is attempting to break a major bearish trend line at 1.0700 on the hourly chart. A close above the 1.0700 handle could ignite more upsides in the short term may be towards 1.0740.
On the downside, the 21 hourly SMA might act as a support at 1.0675, followed by the 1.0660 level.
German Trade Balance
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 market was expecting a trade surplus of €21.4B in Dec 2016.
However, the result was on the lower side, as the trade surplus was €18.4B in Dec 2016. The report added that “German exports increased by 1.2% and imports by 0.6% in 2016 compared with 2015. Exports and imports in 2016 exceeded the previous record highs of 2015, when goods to the value of 1,193.6 billion euros had been exported and goods to the value of 949.2 billion euros had been imported”.
Overall, the Euro is trading with a positive tone, and there are chances of EURUSD breaking the 1.0700 resistance in the near term.
