Key Points
- The Euro declined heavily this week so far against the US Dollar, and traded below the 1.0800 support area.
- There is a bearish trend line formed on the hourly chart of EURUSD, which is acting as a resistance around 1.0750-60.
- Today in the Euro Zone, the German Gross Domestic Product was released by the Statistisches Bundesamt Deutschland.
- The result was lower than the forecast, as there was an increase of 0.2% in Q3 2016.
EURUSD Technical Analysis
The Euro was under heavy selling pressure lately, as it broke a couple of important support levels recently, including 1.1000 and 1.0800. The EURUSD pair traded as low as 1.0706, and currently attempting to correct higher.
The pair is currently facing sellers near a bearish trend line formed on the hourly chart, and the 23.6% Fib retracement level of the last decline from the 1.0915 high to 1.0706 low.
There are many resistances on the way up for the pair, and any corrections may be considered as a selling opportunity.
German Gross Domestic Product
Today in the Euro Zone, the Gross Domestic Product, which is a measure of the total value of all goods and services produced by Germany was released by the Statistisches Bundesamt Deutschland.
The market was not expecting an increase of 0.3% in Q3 2016, compared with the same previous quarter. However, the result was disappointing, as there was a rise of 0.2%. When we look at the yearly change, there was a rise of 1.5%, which was less than the last increase of 3.1%. The report added that “In a quarter-on-quarter comparison (adjusted for price, seasonal and calendar variations), positive contributions were made mainly by domestic final consumption expenditure. The final consumption expenditure of both households and government continued to increase”.
Overall, the EURUSD may correct a few pips higher from the current levels, but it is likely to face sellers on the upside.
