- The Euro after trading towards 1.1105 against the US Dollar started a recovery.
- The EUR/USD pair is currently testing a major bearish trend line at 1.1190 on the hourly chart.
- In the Euro Zone today, the German Unemployment Change for May 2017 published by the German Statistics Office posted -9K, below the forecast of -15K.
EUR/USD Technical Analysis
The Euro declined sharply after failing near 1.1230 against the US Dollar. The EUR/USD pair traded below the 1.1165-70 support area and formed a low at 1.1108.
Later, the pair started recovering, and moved above the 50% Fib retracement level of the last decline from the 1.1230 high to 1.1108 low.
The best part was the pair moving above the 1.1165 resistance.
EUR/USD Hourly Chart
However, the pair is currently testing a major bearish trend line at 1.1190 on the hourly chart. The trend line resistance prevented gains many times, so it won’t be easy for buyers to break 1.1200.
On the downside, an initial support is at 38.2% Fib retracement level of the last wave from the 1.1108 low to 1.1204 high.
Only if buyers succeed in taking the pair above 1.1205, there are chances of gains towards 1.1250 in the near term. If there is a decline below 1.1160, the pair may test 61.8% Fib retracement level of the last wave from the 1.1108 low to 1.1204 high at 1.1144.
German Unemployment Change
Today in the Euro Zone, the German Unemployment Change for May 2017 was published by the German Statistics Office. The market was aligned for the change to be -15K in May 2017.
The actual result was lower than the forecast, as the Unemployment Change was -9K, higher than the last -15K. However, the German Unemployment Rate posted a decline from 5.8% to 5.7%.
Furthermore, the German Retail Sales figure for April 2017 was released by the Statistisches Bundesamt Deutschland. The market was aligned for a rise of 0.2% in April 2017 (MoM), but the actual result was disappointing, as there was a decline of 0.2%.
Overall, the EUR/USD may find it very difficult to break the 1.1190 and 1.1200 resistance levels in the short term.