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  • EUR/USD – Euro Made Short-Term Top Vs US Dollar Near 1.0500

    EUR/USD – Euro Made Short-Term Top Vs US Dollar Near 1.0500

    • – The Euro recently recovered from the 1.0351 low against the US Dollar, and traded above 1.0450.
    • – The recovery could not last long as there was a failure just below the 1.0500 level in EURUSD.
    • – In the Euro Zone, the German GfK Consumer Confidence posted an increase from 9.8 to 9.9 in Jan 2016.

     

    German GfK Consumer Confidence

    Today in the Euro Zone, the German GfK Consumer Confidence, which is a leading index that measures the level of consumer confidence in economic activity was released. The market was aligned for no change from the last reading of 9.8 in Jan 2016.

     

    However, the result was better, as the German GfK Consumer Confidence posted an increase from 9.8 to 9.9 in Jan 2016. The report published highlighted positive points, and mentioned that “Economic expectations have increased slightly, while income expectations have seen significant growth. In contrast, propensity to buy has suffered moderate losses.”

     

    Overall, the result was encouraging, but it may fail to help the Euro to gain traction against the US Dollar for a break above 1.0500. In another release, the French Gross Domestic Product released by INSEE posted a growth rate of 0.2%, just as the market expected in Q3 2016.

     

    EUR/USD Technical Analysis

    The Euro declined heavily recently against the US dollar, and posted a new low of 1.0351 this week. Later, a recovery was started in EUR/USD, taking the pair above the 1.0450 level. The pair traded just below the 1.0500 at 1.0498 where it found sellers and moved down.

     

    EUR/USD Technical Analysis Euro Dollar

     

    During the downside move, the pair broke a bullish trend line on the 4-hours chart at 1.0440. Moreover, there was also a move below the 23.6% Fib retracement level of the last wave from the 1.0351 low to 1.0498 high.

     

    It looks like the pair has made a short-term top at 1.0498 and may decline further. A test of the 50% Fib retracement level of the last wave from the 1.0351 low to 1.0498 high at 1.0420 is possible. The 100 simple moving average (H4) is also positioned near the same level to act as a support in that case.

     

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  • EUR/USD – Can Euro Extend Recovery Above 1.0950 Vs Dollar?

    EUR/USD – Can Euro Extend Recovery Above 1.0950 Vs Dollar?

    • – The Euro after trading as low as 1.0850 against the US Dollar found support, and started a recovery.
    • – There is a monster resistance near 1.0950 and 1.1000 where the Euro buyers may face a lot of offers.
    • – Today in the Euro Zone, the Spanish and French GDP figures were released, which failed to ignite a rally in EUR/USD.

     

    Spanish and French GDP

    Today, the Euro Zone saw a couple of important GDP releases in France and Spain. First, the French Gross Domestic Product, which is a measure of the total value of all goods and services produced by France was released by INSEE.

     

    The market was prepared for a growth rate of 0.3% in the GDP in Q3 2016, compared with the previous quarter. However, the result was a bit lower, as the GDP increased 0.2%. The yearly change in the GDP was 1.1%.

     

    Later, the Spanish Gross Domestic Product was released by the National Institute of Statistics. The GDP grew by 0.7% in Q3 2016, compared with the previous quarter just as the market expected. The yearly change was even better, as there was an increase of 3.2%, compared with the forecast of 3.1%. Overall, the results were mixed, and as a result, there was no major upside move in the Euro during the London session today.

     

    EUR/USD Technical Analysis

    The Euro this past week suffered heavy losses against the US Dollar to trade towards 1.0850. This week it started a recovery, but finding sellers near a major resistance area at 1.0950.

     

    Euro EUR/USD Technical Analysis

     

    The highlighted resistance area represents the 23.6% Fib retracement level of the last drop from the 1.1275 high to 1.0850 low. Moreover, the same level was a support earlier, and now acting as a resistance.

     

    If at all the EUR/USD pair manages to close above the 1.0950 resistance, the next barrier would be around a bearish trend line on the daily chart at 1.10. In short, we can say that there are many crucial hurdles on the way up for the pair, and it won’t be easy for the Euro bulls to continue with the current recovery.

     

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