Key Points
- The Euro after trading as high as 1.0909 against the US Dollar found resistance and moved down.
- There was a break below a bullish trend line with support at 1.0865 on the hourly chart of EURUSD.
- In the Euro Zone today, the Italian Industrial Orders report for Jan 2017 was released by the National Institute of Statistics.
- The result was disappointing, as there was a decline of 2.9% in order in Jan 2017, compared with the previous month.
EURUSD Technical Analysis
The Euro recently moved nicely above 1.0880 against the US Dollar to challenge the 1.0900-1.0910 resistance area where it faced offers. As a result, there was a downside move in EURUSD, and the pair broke the 23.6% Fib retracement level of the last wave from the 1.0761 low to 1.0909 high.
The pair also broke a bullish trend line with support at 1.0865 on the hourly chart. It looks like the pair may trade further lower, and test the 61.8% Fib retracement level of the last wave from the 1.0761 low to 1.0909 high at 1.0820.
On the upside, the 1.0900 level is a major resistance, and it won’t be easy for the Euro buyers to surpass it.
Italian Industrial Orders
Recently in the Euro Zone, the Italian Industrial Orders report for Jan 2017 was released by the National Institute of Statistics. The market was expecting the orders not to decrease in Jan 2017 (MoM).
The outcome was disappointing, as there was a decline of 2.9% in order in Jan 2017, compared with the previous month. The yearly change was +8.6%, which was a lot better than the last decline of 0.9%. The report added that “the seasonally adjusted turnover index decreased by -3.5% compared to the previous month (-2.3% in domestic market and -5.4% in non-domestic market)”.
Overall, the EURUSD might struggle to retain the current bullish bias, and could trade lower towards the 1.0820 level.
