- The Euro climbed higher this week against the US Dollar until it found sellers near 1.1300-20.
- There is a major resistance trend line on the 4-hours chart of EURUSD that prevented further gains.
- Today, the German Trade Balance released by the Statistisches Bundesamt Deutschland posted a trade surplus of €19.4B in July 2016, less than the forecast.
German Trade Balance
The Euro enjoyed a decent upside move this week against the US Dollar, but it looks like slowly the EURUSD pair is coming under pressure. The recent economic releases also increased the bearish pressure in the short term.
Today, the German Trade Balance report was released by the Statistisches Bundesamt Deutschland. The forecast was lined up for the balance between exports and imports of total goods and services to post a trade surplus of €22.0B in July 2016.
However, the result was a bit on the lower side, as the trade surplus was €19.4B in July 2016. Both imports and exports declined by 0.7 and 2.6% respectively.
The report further added that “Germany exported goods to the value of 96.4 billion euros and imported goods to the value of 76.9 billion euros in July 2016. Based on provisional data, the Federal Statistical Office (Destatis) also reports that German exports decreased by 10.0% and imports by 6.5% in July 2016 year on year.” Overall, the result was not encouraging enough to lift the market sentiment in favor of the Euro bulls.
EURUSD Pair Analysis
The Euro was helped by a weaker US Dollar this week. The EURUSD pair marched higher and traded as high as 1.1320 where it found offers.
The stated level acted as a barrier earlier as well, so this is probably 4th time the upside was stopped. There a major resistance trend line on the 4-hours chart as well, which also defended the upside move.
The pair already under a correction. It tested the 100 simple moving average (4H) where the Euro bulls appeared. There is a chance of another upside move towards the 1.1320. In that case, I think the Euro sellers might again succeed in protecting further gains as shown in the chart.
Tags: Euro, EURUSD Pair Analysis, German Trade Balance, US Dollar