EUR/USD Forecast – Euro Facing Major Resistance Near 1.0630 Vs Dollar

• – The Euro after trading as low as 1.0569 against the US Dollar started an upside move.
• – The EUR/USD pair is currently heading towards a monster bearish trend line with resistance at 1.0630 on the hourly chart.
• – Earlier today, the German wholesale price Index for March 2017 released by the Statistisches Bundesamt Deutschland posted a rise of 4.7% (YoY).

German Wholesale Price Index

Today in the Euro Zone, the German wholesale price Index for March 2017 was released by the Statistisches Bundesamt Deutschland. The market was positioned for the value of sales made by wholesalers in Germany to increase by around 2.8% in March 2017, compared with the same month a year ago.

The outcome just around the forecast, as the German wholesale price Index rose 4.7% in March 2017, which was lower than the last +5%. In terms of the monthly change, the WPI remained unchanged, compared with the last increase of 0.5%. As per the report, “In February 2017 and in January 2017 the annual rates of change were +5.0% and +4.0%, respectively”.

Overall, the result was mostly neutral, any may not put pressure on EUR/USD, which is why the pair may rise towards 1.0620-1.0630.

EUR/USD Technical Analysis

The Euro declined towards the 1.0570 level against the US Dollar, and traded as low as 1.0569. Later, the EUR/USD started a recovery, and managed to move above the 38.2% Fib retracement level of the last decline from the 1.0664 high to 1.0569 low.

However, the upside move was prevented by a connecting bearish trend line at 1.0628, and the 61.8% Fib retracement level of the last decline from the 1.0664 high to 1.0569 low. The pair also struggled to move above the 100 hourly simple moving average at 1.0615. Moreover, there is a monster bearish trend line with resistance at 1.0630 on the hourly chart, waiting to act as a hurdle.

So, if the pair moves higher, it is likely to face sellers near 1.0620 and 1.0630. On the downside, there is a support trend line at 1.0600, which may act as a short-term barrier for more losses in the near term.