EUR/USD – Euro Faces Major Resistance Vs US Dollar
Aayush Jindal
Key Highlights
The Euro fell sharply towards the 1.1160 support against the US Dollar this past week where it found buyers.
The EUR/USD pair is currently recovering, but faces a major bearish trend line at 1.1220 on the 4-hours chart.
Today in the Euro Zone, the Italian Industrial Output change for April 2017 will be released by the National Institute of Statistics, which is expected to increase by 0.2% (MoM).
Today in New Zealand, the Electronic Card Retail Sales for May 2017 reported by Statistics New Zealand posted a decline of 0.4% (MoM).
EURUSD Technical Analysis
The Euro started a downside move from the 1.1280 swing high against the US Dollar towards 1.1160. The EUR/USD is currently correcting, but faces a major resistance at 1.1220.Looking at the 4-hours chart of EUR/USD, there is a major bearish trend line formed with resistance at 1.1220. At present, the pair is struggling to clear the 38.2% Fib retracement level of the last drop from the 1.1284 high to 1.1166 low.The most important resistance is near the trend line as it coincides with the 50% Fib retracement level of the last drop from the 1.1284 high to 1.1166 low.Moreover, the 100 simple moving average at 1.1208 is also acting as a barrier for buyers and protecting gains. Overall, the EUR/USD pair faces many resistances on the way up towards 1.1220.
New Zealand Electronic Card Retail Sales
Today in New Zealand, the Electronic Card Retail Sales for May 2017 was reported by Statistics New Zealand. The market was not expecting any decline in May 2017, compared with the previous month.However, the actual result was negative, as there was a decline of 0.4%, which was a lot less than the last revised reading of +0.9%.In terms of the yearly change, there was a rise of 5.2%, which was more than the last 4.5%. The report added that “Monthly retail card spending fell 0.4 percent in May 2017 compared with April 2017, when seasonally adjusted. The largest fall came from the consumables industry, down $12 million (0.7 percent). The consumables industry includes grocery and liquor retailing”.The New Zealand Dollar remained in the bullish zone, and looking to extend gains above 0.7200.
Looking at the 4-hours chart of EUR/USD, there is a major bearish trend line formed with resistance at 1.1220. At present, the pair is struggling to clear the 38.2% Fib retracement level of the last drop from the 1.1284 high to 1.1166 low.The most important resistance is near the trend line as it coincides with the 50% Fib retracement level of the last drop from the 1.1284 high to 1.1166 low.Moreover, the 100 simple moving average at 1.1208 is also acting as a barrier for buyers and protecting gains. Overall, the EUR/USD pair faces many resistances on the way up towards 1.1220.