Euro managed to gain traction this past week against the US Dollar, and traded above the 1.0920 resistance area.
There was a bearish trend line formed on the 4-hours chart of the EURUSD pair, which was breached recently by the bulls.
Today, the German Factory orders will be released by the Deutsche Bundesbank, which is forecasted to decrease by 0.5% in Jan 2016.
Earlier today, the Australian HIA/AiG Performance of Construction Index, released by the Australian Industry Group and the Housing Industry Association posted a reading of 46.1, down from the last reading of 46.3.
EURUSD Technical Analysis
The EURUSD pair traded down towards the 1.0820 support area before it found buyers and started to trade back higher. There was a bearish trend line formed on the 4-hours chart of the EURUSD pair, which was cleared recently to open the doors for more gains in the near term.However, the pair is currently finding a major barrier near a confluence area of the 100 and 200 simple moving average on the 4-hours chart.Moreover, the 38.2% Fib retracement level of the last drop from the 1.1375 high to 1.0824 low is also around the 100 MA. So, the 1.1040 level may act as a major barrier for more gains moving ahead.
Australian HIA/AiG Performance of Construction Index
Today, the 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 not on the higher side, as the HIA/AiG Performance of Construction Index dropped from the last reading of 46.3 to 46.1 in Feb 2016.The report stated that the “it is the third consecutive month that the Australian PCI® has been below the critical 50 points level that separates expansion from contraction. This follows the industry’s return to growth during the four months to November 2015”.Overall, the outcome was not as the market expected, and had a minor impact on the Aussie Dollar. Today, there is no major market moving economic releases lined up. So, it may be mostly the market sentiment, which can be seen as a driver for most of the major pairs.
However, the pair is currently finding a major barrier near a confluence area of the 100 and 200 simple moving average on the 4-hours chart.Moreover, the 38.2% Fib retracement level of the last drop from the 1.1375 high to 1.0824 low is also around the 100 MA. So, the 1.1040 level may act as a major barrier for more gains moving ahead.