This article is originally referred from TitanFX Forex News.
- The Euro failed to correct higher this past week against the US Dollar, and traded below the 1.10 support area.
- There was a breakout pattern formed on the hourly chart of the EURUSD pair, which was broken during the recent downside move.
- Today in the Euro Zone, the German business sentiment index will be released by the CESifo Group.
- The market is expecting a decline from the last reading of 108.7 to 107.5 in July 2016.
EURUSD TECHNICAL ANALYSIS
The Euro was crushed recently against the US Dollar, as it broke a couple of important support levels to trade down. The EURUSD pair also closed below the 1.10 support area, which is a bearish sign.
During the downside move, the pair also cleared a breakout pattern formed on the hourly chart. Currently, the lower trend line of the highlighted pattern is acting as a resistance and protecting a recovery in the EURUSD pair.
The hourly RSI has moved below the 50 level, which means sellers are in control and the current losses may extend in the near term.
GERMAN IFO BUSINESS CLIMATE INDEX
Today in the Euro Zone, there is a major release lined up. The German business sentiment index, which is closely watched as an early indicator of current conditions and business expectations in Germany will be reported by the CESifo Group.
The forecast is lined up for a decline from the last reading of 108.7 to 107.5 in July 2016. If there is a decline more than the forecast, as then the Euro may extend the current losses.
JAPANESE MERCHANDISE TRADE BALANCE TOTAL
Earlier today during the Asian session, the Japanese Merchandise Trade Balance Total, which is a measure of balance amount between import and export was released by the Ministry of Finance.
The forecast was lined up for a trade surplus of ¥494.8B in June 2016. However, the result was above the forecast, as the trade surplus came in at ¥692.8B. Both imports and exports registered a decline of 7.4% and 18.8% respectively.
Moreover, the Adjusted Merchandise Trade Balance posted a trade surplus of ¥335.0B, more than the last reading of ¥269.8B. All in all, the report was positive, and may help the Japanese yen to gain traction in the short term.
Original Source: TitanFX Forex News