EURUSD – Positive Signs Emerging, But Buyers Face Uphill Task
Aayush Jindal
Key Highlights
Euro weakened a lot against the US Dollar recently, and traded close to the 1.1080 support area.
EURUSD is currently correcting higher, but facing a lot of resistance on the upside.
German Industrial Production will be released by the Statistisches Bundesamt Deutschland today, which is expected to increase by 1% in July 2015, compared with the preceding month.
Australian HIA/AiG Performance of Construction Index, released by the Australian Industry Group and the Housing Industry Association came in at 53.8 in August 2015.
EURUSD Technical AnalysisThe EURUSD pair declined heavily this past week, and traded close to the 1.1080 support area. There was a minor correction after the pair tested the mentioned area. However, there are a couple of bearish trend lines formed which might act as a hurdle for more gains in the near term.On the upside, the 1.1180 represents a major resistance, as it is coinciding with a bearish trend line and the 61.8% Fib retracement level of the last drop from the 1.1242 high to 1.1086 low. The pair is well below the 100 and 200 hourly simple moving averages, which is a bearish signal.However, we do have a few positive signs, as the hourly RSI is above the 50 level. Let’s see whether buyers can overcome hurdles or not moving ahead.German IPToday in the Euro Zone, the German Industrial Production, which measures outputs of the German factories and mines will be released by the Statistisches Bundesamt Deutschland. The forecast is lined up for an increase of 1% in July 2015, compared with the preceding month. Any disappointment might put a lot of pressure on the Euro, and might stall gains in the EURUSD pair.Australian AIG IndexEarlier today, the Australian HIA/AiG Performance of Construction Index, which is considered as an indicator that measures the conditions on the short and medium term in the construction market was released by the Australian Industry Group and the Housing Industry Association. The outcome was above the forecast, as there was an increase in the index from the last reading of 47.1 to 53.8.The report highlighted that “rebound in the Australian PCI in August was driven by a solid improvement in the new orders sub-index which returned to growth (i.e. above 50 points) for the first time in five months“.
On the upside, the 1.1180 represents a major resistance, as it is coinciding with a bearish trend line and the 61.8% Fib retracement level of the last drop from the 1.1242 high to 1.1086 low. The pair is well below the 100 and 200 hourly simple moving averages, which is a bearish signal.However, we do have a few positive signs, as the hourly RSI is above the 50 level. Let’s see whether buyers can overcome hurdles or not moving ahead.German IPToday in the Euro Zone, the German Industrial Production, which measures outputs of the German factories and mines will be released by the Statistisches Bundesamt Deutschland. The forecast is lined up for an increase of 1% in July 2015, compared with the preceding month. Any disappointment might put a lot of pressure on the Euro, and might stall gains in the EURUSD pair.Australian AIG IndexEarlier today, the Australian HIA/AiG Performance of Construction Index, which is considered as an indicator that measures the conditions on the short and medium term in the construction market was released by the Australian Industry Group and the Housing Industry Association. The outcome was above the forecast, as there was an increase in the index from the last reading of 47.1 to 53.8.
The report highlighted that “rebound in the Australian PCI in August was driven by a solid improvement in the new orders sub-index which returned to growth (i.e. above 50 points) for the first time in five months“.
On the upside, the 1.1180 represents a major resistance, as it is coinciding with a bearish trend line and the 61.8% Fib retracement level of the last drop from the 1.1242 high to 1.1086 low. The pair is well below the 100 and 200 hourly simple moving averages, which is a bearish signal.However, we do have a few positive signs, as the hourly RSI is above the 50 level. Let’s see whether buyers can overcome hurdles or not moving ahead.German IPToday in the Euro Zone, the German Industrial Production, which measures outputs of the German factories and mines will be released by the Statistisches Bundesamt Deutschland. The forecast is lined up for an increase of 1% in July 2015, compared with the preceding month. Any disappointment might put a lot of pressure on the Euro, and might stall gains in the EURUSD pair.Australian AIG IndexEarlier today, the Australian HIA/AiG Performance of Construction Index, which is considered as an indicator that measures the conditions on the short and medium term in the construction market was released by the Australian Industry Group and the Housing Industry Association. The outcome was above the forecast, as there was an increase in the index from the last reading of 47.1 to 53.8.
The report highlighted that “rebound in the Australian PCI in August was driven by a solid improvement in the new orders sub-index which returned to growth (i.e. above 50 points) for the first time in five months“.