EURUSD – Euro Poised For Declines Versus US Dollar
Key Highlights
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The Euro after completing a corrective rally against the US Dollar found sellers and started to move down.
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There was a monster resistance area around the 1.1160-80 levels, which acted as a barrier for the Euro bulls and pushed the EURUSD pair down.
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In the US today, the NAHB Housing Market Index will be released by the National Association of Home Builders, which is forecasted to remain at 60 in July 2016.
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In New Zealand, the Consumer Price Index released by the Statistics New Zealand posted a rise of 0.4% in Q2 2016.
EURUSD Technical Analysis
The Euro recovered this past week towards the 1.1160-80 levels against the US Dollar. However, the stated levels acted as a major resistance and pushed the EURUSD pair down once again.
The recent failure was around a crucial area, as it represented the 50% Fib retracement level of the last drop from the 1.1428 high to 1.0911 low. So, we can say that the pair completed a correction wave and may weaken further in the near term.
It already broke a support trend line formed on the 4-hours chart and currently looks set for more declines moving ahead.
US NAHB Housing Market Index
Later today in the US, NAHB Housing Market Index will be released by the National Association of Home Builders. The stated index presents the trend in home sales and expected home buildings in the future in the housing market and is forecasted to remain at 60 in July 2016.
Other than this, there is no market moving event lined up today. So, the market will me mostly driven by the sentiment, which is currently favoring the US Dollar bulls.
Author
Aayush Jindal
TitanFX
I have spent over six years as a financial markets contributor and observer, and possess strong technical analytical skills. I am a software engineer by profession, loves blogging and observing financial markets.
