- The Euro remained under pressure and traded below 1.0905 against the US Dollar.
- The EURUSD pair is currently recovering, but facing resistance near 1.0900 and a bearish trend line on the hourly chart.
- The French Trade Balance for March 2017 released by MINEFA posted a trade deficit of €-5.353B, which was less than the forecast of €-6.000B.
EURUSD Technical Analysis
The Euro traded lower recently, and broke a major support area at 1.0905 against the US Dollar. The EURUSD pair traded as low as 1.0862 from where it started a short term correction.
The pair moved higher, and traded above the 23.6% Fib retracement level of the last decline from the 1.0932 high to 1.0862 low.
However, the upside move found a strong selling interest near 1.0900 and a bearish trend line on the hourly chart.
EURUSD Hourly Chart
The same trend line resistance acted as a major hurdle on many occasions, and also sits near the 50% Fib retracement level of the last decline from the 1.0932 high to 1.0862 low.
The pair is currently consolidating just below the trend line resistance. If it fails, there can be a decline back towards the 1.0850 level.
On the other hand, if EURUSD manages to settle above 1.0905, there can be a nice upside move towards the next resistance at 1.0940.
French Trade Balance and Industrial Output
Today in the Euro Zone, the French Trade Balance for March 2017 was released by MINEFA. The market was expecting a trade deficit of €-6.000B, compared with the last €-6.570B.
The actual result was better than the forecast, as there was a trade deficit of €-5.353B. Also, the last reading was revised down from €-6.570B to €-6.432B. Exports were €39.300B, and imports were €44.600B in March 2017.
Today, the French Industrial Output for March 2017 was also released by INSEE. The forecast was lined up for a rise of 1% in the Industrial Output, compared with the previous month. The actual result was better than the forecast, as there was an increase of 2%.
Overall, the market sentiment improved for the EURUSD pair, but it may not be easy for it to break the 1.0900-1.0905 resistance.