Key Points
- Euro managed to move above the 1.1180 level against the US Dollar, but later found sellers.
- There was a bullish trend line formed on the hourly chart of the EURUSD pair, which was broken during the downside move.
- The German Factory orders released by the Deutsche Bundesbank posted no change in May 2016, whereas the market was expecting a rise of 1%.
- In terms of the yearly change, there was a decrease of 0.2% in the orders.
Technical Analysis
The Euro managed to post gains recently against the US Dollar until it found sellers near 1.1180. The EURUSD pair started to move down, and during the downside move it broke a bullish trend line formed on the hourly chart.
The pair is now below 100 and 50 hourly simple moving averages, which may act as a resistance area if the pair attempts to move higher in the near term.
Selling rallies near the highlighted resistance area can be considered. On the downside, the recent low of 1.1036 can be eyed as a support area.
German Factory Orders
In the Euro Zone today, the German Factory orders, which is an indicator that includes shipments, inventories, and new and unfilled orders was released by the Deutsche Bundesbank. The market was expecting an increase in the orders by 1% in May 2016, compared with the previous month. However, the result was lower, as there was no change in the orders.
When we look at the yearly change, there was a decrease of 0.2% in the German Factory orders, compared with the last decline of 0.4%.
Overall, there is a bearish pressure on the EURUSD pair, and if it recovers sellers may appear once again.
