- – There Euro was seen struggling to clear a major resistance near 1.0630 against the US Dollar.
- – The EUR/USD pair is currently attempting a break below a crucial bullish trend line at 1.0585 on the hourly chart.
- – The German Factory orders released by the Deutsche Bundesbank posted a decline of 7.4% in Jan 2017 (MoM), compared with the -2.7% forecast.
German Factory Orders
Today in the Euro Zone, the German Factory orders for Jan 2017 was released by the Deutsche Bundesbank. The market was expecting the shipments, inventories, and new and unfilled orders to decline by around 2.7% in Jan 2017, compared with the previous month.
The outcome was well below the forecast, as the German Factory orders posted a decline of 7.4% in Jan 2017. In terms of the yearly change, there was a decrease of 0.8% in Jan 2017, which was a lot lower compared with the last increase of 8% (revised). In Italy today, the Producer Price Index for Jan 2017 (MoM) was released by the National Institute of Statistics. The result was around the forecast, as the Producer Price Index posted a rise of 1% in Jan 2017, compared with the previous month.
Overall, the Euro has hardly any reason to remain supported, which means the EUR/USD pair could trade towards 1.0550 in the short term.
EUR/USD Technical Analysis
There was a rise in the Euro towards 1.0630-1.0640 against the US Dollar where it found resistance. The stated resistance near 1.0630 acted as a barrier on many occasions. It prevented gains once again in EUR/USD and pushed the pair back below 1.0600.
The pair also moved below the 23.6% Fib retracement level of the last wave from the 1.0494 low to 1.0639 high. At the moment, it is attempting a break below a crucial bullish trend line at 1.0585 on the hourly chart.
If there is a close below the trend line support or 1.0580, there is a chance of a move towards 1.0550. The pair may even test the 61.8% Fib retracement level of the last wave from the 1.0494 low to 1.0639 high or the 100 hourly simple moving average around 1.0550. Overall, the pair remains at a risk of a breakdown in the near term.Tags: EUR/USD Technical Analysis, Euro, German Factory Orders, US Dollar