- The Euro started a nasty downside move after trading as high as 0.8507 against the British Pound found.
- The EURGBP pair is now following two important bearish trend lines with resistance at 0.8440 on the hourly chart.
- The German Trade Balance for March 2017 released by the Statistisches Bundesamt Deutschland posted a trade surplus of €19.6B, less than the forecast of €20.9B.
EURGBP Technical Analysis
The Euro was in a nice uptrend and traded as high as 0.8507 against the British Pound found. Later, the EURGBP faced offers, and started a downside move below 0.8500.
The pair traded lower and broke the 50% Fib retracement level of the last wave from the 0.8320 low to 0.8507 high.
It ignited further losses, and the pair moved below 0.8460, and even broke a major support area near 0.8450.
EURGBP Hourly Chart
It formed a low at 0.8421 today, and currently attempting a recovery. On the upside, there are two important bearish trend lines with resistance at 0.8440 on the hourly chart.
The pair may soon test the 0.8440 resistance area, where it could face offers. The same area also coincides with the 23.6% Fib retracement level of the last decline from the 0.8507 high to 0.8421 low.
Only if the pair trades above 0.8450, it could move back in the bullish zone.
German Trade Balance
Today in the Euro Zone, the German Trade Balance for March 2017 was released by the Statistisches Bundesamt Deutschland. The market was expecting a trade surplus of €20.9B in March 2017, compared with the last €21.0B.
The actual result was a bit lower than the forecast, as the trade surplus was €19.6B in March 2017. On the other hand, the last reading was revised up from €21.0B to €21.2B. The Germany’s Imports of goods and services in March 2017 rose 2.4%, and exports also increased 0.4%.
The report published added that:
The current account of the balance of payments showed a surplus of 30.2 billion euros in March 2017, which takes into account the balances of trade in goods including supplementary trade items (+27.4 billion euros), services (–1.3 billion euros), primary income (+6.5 billion euros) and secondary income (–2.5 billion euros).
Overall, the Euro may find it hard to recover above 0.8450 against the British Pound and could even break 0.8420 to move towards 0.8400.