The Euro moved down towards 1.0850 against the US dollar recently, and currently attempting recovery, which may find sellers on the upside.
EURUSD Weekly Analysis – Euro Remains Sell On Rallies
· The Euro moved down to test the 1.0850 support against the US Dollar where buyers appeared.
· The EURUSD pair is currently recovering, but may face sellers near 1.0950 and a bearish trend line formed on the 4-hours chart.
· The GfK Consumer Confidence released today failed to impress and came in at 9.7, down from 10.
EURUSD Technical Analysis
The Euro declined this past week and traded as low as 1.0851 this week against the US Dollar. The EURUSD pair is under a bearish pressure, which can be clearly seen in the 4-hours chart with resistances near 1.0950 and 1.1000.
The pair is currently recovering, and moved above the 23.6% Fib retracement level of the last drop from the 1.1038 high to 1.0851 low. However, the upside may be limited by a bearish trend line near 1.0950. The stated level also represents the 50% Fib retracement level of the last drop from the 1.1038 high to 1.0851 low.
So, it looks like if the pair continues to trade higher, it may face sellers near 1.0950. There is another trend line on the upside waiting to act as a barrier.
Trade Idea – If you are looking to enter a sell trade, then consider it near the 1.0950 resistance with a stop of around 20 pips.
There were a few positive releases in the Euro Zone this week so far, which helped the EURUSD pair to recover from the 1.0850 low. However, today’s GfK Consumer Confidence failed to impress. It is a leading index, measuring the level of consumer confidence, and was forecasted to remain at 10 in Nov 2016.
However, the result was disappointing, as there was a decline to 9.7. The report highlighted that “GfK Consumer Confidence is a leading index that measures the level of consumer confidence in economic activity”. In short, it looks like the Euro buyers may not be able to retain the current momentum, and may fail soon.
If you are a buyer, then you need to keep an eye on the 1.0950 resistance zone.