EURUSD Poised for Declines Ahead of Euro Area Trade Balance
Aayush Jindal
Key Highlights
EURUSD after trading close to 1.1300 failed and currently remains at a risk of declines.
Euro Area Trade Balance report will be released by the Eurostat today, which is expected to post a trade surplus of around €19B.
In the UK, the Rightmove House Price Index was released during the Asian session, which registered an increase of 3% in June 2015.
EURUSD – Technical AnalysisThe Euro managed to trade higher against the US Dollar earlier to trade close to the 1.1300 area where it found a bearish trend line on the hourly chart. The pair failed to trade above the same, moved lower, and currently trading below the 100 and 200 simple moving average. Moreover, the failure was also around the 61.8% Fib retracement level of the last drop from the 1.1385 high to 1.1150 low. In short, the recent failure marks the completion of a correction.The hourly RSI moved below the 50 level, which is another warning that could take the price lower in the near term. The pair opened with a minor gap down, which means there is a chance of a small wave up. In that situation, the pair might face hurdle around the 200 hourly simple moving average, followed by 100 MA.On the downside, a break below the last low of 1.1150 may perhaps ignite more losses in the near term. Let us see how the pair trades moving ahead, as there seems to be a lot of bearish pressure.Euro Area Trade BalanceLater today, the Euro Area Trade Balance, i.e. a balance between exports and imports of total goods and services will be released by the Eurostat. The market is not expecting any major increase in the trade surplus. Any disappointment on the trade front might create a lot of selling pressure on EURUSD.UK Rightmove House Price IndexEarlier during the Asian session, the UK Rightmove House Price Index, which provides a sample of residential property prices in the UK was published. The outcome was a positive one, as the UK HPI was up by around 3% in June 2015, compared to the preceding month.The report stated that the “Price of property coming to market rebounds to all-time high as majority-government surprise leads to biggest ever rise in month of June”.
The hourly RSI moved below the 50 level, which is another warning that could take the price lower in the near term. The pair opened with a minor gap down, which means there is a chance of a small wave up. In that situation, the pair might face hurdle around the 200 hourly simple moving average, followed by 100 MA.On the downside, a break below the last low of 1.1150 may perhaps ignite more losses in the near term. Let us see how the pair trades moving ahead, as there seems to be a lot of bearish pressure.Euro Area Trade BalanceLater today, the Euro Area Trade Balance, i.e. a balance between exports and imports of total goods and services will be released by the Eurostat. The market is not expecting any major increase in the trade surplus. Any disappointment on the trade front might create a lot of selling pressure on EURUSD.UK Rightmove House Price IndexEarlier during the Asian session, the UK Rightmove House Price Index, which provides a sample of residential property prices in the UK was published. The outcome was a positive one, as the UK HPI was up by around 3% in June 2015, compared to the preceding month.The report stated that the “Price of property coming to market rebounds to all-time high as majority-government surprise leads to biggest ever rise in month of June”.
The hourly RSI moved below the 50 level, which is another warning that could take the price lower in the near term. The pair opened with a minor gap down, which means there is a chance of a small wave up. In that situation, the pair might face hurdle around the 200 hourly simple moving average, followed by 100 MA.On the downside, a break below the last low of 1.1150 may perhaps ignite more losses in the near term. Let us see how the pair trades moving ahead, as there seems to be a lot of bearish pressure.Euro Area Trade BalanceLater today, the Euro Area Trade Balance, i.e. a balance between exports and imports of total goods and services will be released by the Eurostat. The market is not expecting any major increase in the trade surplus. Any disappointment on the trade front might create a lot of selling pressure on EURUSD.UK Rightmove House Price IndexEarlier during the Asian session, the UK Rightmove House Price Index, which provides a sample of residential property prices in the UK was published. The outcome was a positive one, as the UK HPI was up by around 3% in June 2015, compared to the preceding month.The report stated that the “Price of property coming to market rebounds to all-time high as majority-government surprise leads to biggest ever rise in month of June”.