- Summary:
- EURUSD is under selling pressure in today's trading as data from the euro zone missed expectations. Can support at the rising trend line hold?
EURUSD spent the Asian session trading lower and it did not help that data from the euro zone came in mixed. The currency pair bottomed at 1.1143 after opening at 1.1170. It went as high as 1.1186 but gave up its gains after reports printed negative numbers.
Germany’s retail sales report for February printed at 0.9% and missed the 1.0% forecast. The final readings of services PMI reports from France and Germany also saw downward revisions. The French final services PMI was updated to 52.5 after initially being reported at 52.6. Meanwhile, Germany’s reading was downgraded from 52.8 to 53.3. The region-wide version of the report also came in lower at 52.6 when it was previously stated at 52.8. Meanwhile, the euro zone’s retail sales came in as expected at 0.6%.
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EURUSD Outlook
On the hourly time frame, we can see that EURUSD is testing support at the rising trend line from connecting the lows of February 28 and March 3. This price, around 1.1160, also coincides with the 50% Fib level when drawing the Fibonacci retracement tool from yesterday’s low to its intraday high. The recent reversal candlesticks could indicate that EURUSD may soon rally.
The daily time frame suggests that near-term resistance is at 1.1238 where the currency pair topped on December 31. It’s also worth pointing out that EURUSD is currently testing resistance at its October 18 and October 31 highs. A bearish candlestick below the rising trend line on the hourly chart could indicate that this resistance level would hold. EURUSD could soon then fall to yesterday’s low at 1.1094. If it does not hold, the next floor would be at 1.0950 where the currency pair bottomed on February 28.