EURUSD – Euro Looking To Extend Gains Against US Dollar
Aayush Jindal
Key Highlights
The Euro managed to recover well from the 1.0493 level against the US Dollar.
The EURUSD pair is currently attempting to break a bearish trend line at 1.0620 on the 4-hours chart.
Today in the Euro Zone, the Sentix investor Confidence Index for Mar 2017 will be released, which is forecasted to decrease from 17.4 to 16.00.
In Australia, the Retail Sales figure for Jan 2017 (released by the Australian Bureau of Statistics), posted a rise of 0.4%.
EURUSD Technical Analysis
The Euro failed once again to settle below the 1.0500 handle, and recovered. The current recovery in EURUSD looks positive, as the pair looks for further gains above 1.0620.The pair was rejected once again near the 1.0490 and 1.0500 levels, resulting in a bounce. It looks like the pair has formed a double bottom near 1.0490, and might continue to trade higher.It has already moved above the 100 simple moving average (H4) at 1.0595. The pair also crawled above the 23.6% Fib retracement level of the last decline from the 1.0828 high to 1.0493 low.At the moment, the pair is facing resistance near a bearish trend line at 1.0620 on the 4-hours chart. The same level also coincides with the 38.2% Fib retracement level of the last decline from the 1.0828 high to 1.0493 low. So, a break above the highlighted resistance might produce further gains in EURUSD.
Australian Retail Sales
Today in Australia, the Retail Sales figure for Jan 2017 was released by the Australian Bureau of Statistics. The market was not expecting any decline in the sales in Jan 2017, compared with the previous month.The outcome was positive, as there was a rise of 0.4%, more than the last decline of -0.1%. The report added that the “following industries rose in trend terms in January 2017: Food retailing (0.3%), Clothing, footwear and personal accessory retailing (0.6%), Household goods retailing (0.2%), Other retailing (0.1%), Cafes, restaurants and takeaway food services (0.1%) and Department Stores (0.2%)”.Overall, the market sentiment for the Aussie dollar was improved after the release, and the AUDUSD pair traded a few pips higher.
Today’s Important Economic Releases
Euro Zone Sentix investor Confidence Index for Mar 2017 – Forecast 16, versus 17.4 previous.
US Factory orders Jan 2017 (MoM) - Forecast +1.2%, versus +1.3% previous.
The pair was rejected once again near the 1.0490 and 1.0500 levels, resulting in a bounce. It looks like the pair has formed a double bottom near 1.0490, and might continue to trade higher.It has already moved above the 100 simple moving average (H4) at 1.0595. The pair also crawled above the 23.6% Fib retracement level of the last decline from the 1.0828 high to 1.0493 low.At the moment, the pair is facing resistance near a bearish trend line at 1.0620 on the 4-hours chart. The same level also coincides with the 38.2% Fib retracement level of the last decline from the 1.0828 high to 1.0493 low. So, a break above the highlighted resistance might produce further gains in EURUSD.
The outcome was positive, as there was a rise of 0.4%, more than the last decline of -0.1%. The report added that the “following industries rose in trend terms in January 2017: Food retailing (0.3%), Clothing, footwear and personal accessory retailing (0.6%), Household goods retailing (0.2%), Other retailing (0.1%), Cafes, restaurants and takeaway food services (0.1%) and Department Stores (0.2%)”.Overall, the market sentiment for the Aussie dollar was improved after the release, and the AUDUSD pair traded a few pips higher.