- The Euro is currently struggling to hold a major support at 1.1140-30 against the US Dollar.
- The EUR/USD pair recently broke a short-term bullish trend line at 1.1155 on the hourly chart.
- Today in the Euro Zone, the German PPI for May 2017 and Euro Zone Current Account figure will be released for April.
EUR/USD Technical Analysis
The Euro struggled lately and moved below the 1.1220-10 support against the US Dollar. The EUR/USD pair fell sharply and traded towards the next major support area near 1.1130-20.
The stated 1.1130 support area managed to hold the downside, and pushed the pair higher. The upside failed as sellers protected further gains above 1.1210 (support turned resistance).
The pair again moved down and currently trading just above the 1.1130 support area.
EUR/USD Hourly Chart
During the recent slide, the pair broke a short-term bullish trend line at 1.1155 on the hourly chart. It is currently correcting higher with an initial resistance on the upside around the 23.6% Fib retracement level of the last decline from the 1.1211 high to 1.1139 low.
Moreover, the broken trend line at 1.1160 may now act as a resistance and prevent gains.
Any further gains could take the pair towards the 38.2% Fib retracement level of the last decline from the 1.1211 high to 1.1139 low.
As long as the pair is below the 1.1210-20 resistance area, it remains at a risk of more declines. It could even break the 1.1130 support for a move towards 1.1100.
Euro Zone Current Account and Construction Output
Today, the Euro Zone will see the release of the German PPI for May 2017 and Euro Zone Current Account figure for April. Any major disappointment could ignite a break below the 1.1130 support in EUR/USD.
Recently, the Euro Zone Construction Output for April 2017 was released by the Eurostat. The forecast was an increase of 0.1% compared with the previous month.
The actual result was better than the forecast, as the Euro Zone Construction Output grew 0.3% (MoM). In terms of the yearly change, there was an increase of 3.2%, less than the last +3.6%.
It seems like the EUR/USD may continue to struggle in the near term, and could even break 1.1130 for further declines.