(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();

EURUSD – Euro Continues To Struggle Near 1.0660-1.0670

Article background

Aayush Jindal

Key Highlights

  • The Euro traded higher this past week, but failed to break a major resistance area near 1.0660-1.0670.
  • There are a couple of connecting resistance trend lines formed on the 4-hours chart of EURUSD, acting as a hurdle near 1.0660-1.0670.
  • Today in the Euro Zone, the Italian Consumer Price Index will be released by the Istat, which is forecasted to post a rise around 0.4% in Dec 2016, compared with Nov 2016.
  • In New Zealand earlier today, the Food Price Index (FPI) released by the Statistics New Zealand posted a decline of 0.8% in Nov 2016.

EURUSD Technical Analysis

There were gains in the Euro this past week versus the US Dollar, but it failed to break the 1.0660-1.0670 resistance area. Let’s see what’s stopping the EURUSD pair from moving higher.EURUSD Technical Analysis Euro DollarAs it can be seen from the 4-hours chart of EURUSD, there are a couple of connecting resistance trend lines acting as a hurdle near 1.0660-1.0670. The highlighted resistance area acted as a hurdle earlier as well, and this time it is acting as a solid barrierfor more gains.The pair has already started correcting lower, and moved below the 23.6% Fib retracement level of the last wave from the 1.0453 low to 1.0685 high. There are chances that the pair may dip further towards 1.0550 before making an attempt to move higher once again.

New Zealand Food Price Index

Earlier during the Asian session, the New Zealand Food Price Index (FPI), which measures price changes of food bought by households. New Zealand depends upon exporting agricultural goods and food products was released by the Statistics New Zealand.The market was not expecting any major decline in the FPI in Nov 2016, compared with the previous month. However, there was a decline of 0.8% in the FPI.The report added that “Overall, food prices fell 0.8 percent in December. Lower food prices were seen across most food items in December 2016, with non-alcoholic beverages falling 3.1 percent. After seasonal adjustment, food prices fell 0.5 percent”.It looks like the market sentiment remains stable for now, and pointing a consolidation phase for pairs like EURUSD, AUDUSD and NZDUSD. Later, during the week, we may witness swing moves in the US dollar.
Great
Trustpilot
Open an AccountOpen Share Account24/7 Support
Loading