* Euro came under a lot of bearish pressure today against the US Dollar, as it traded close to the 1.0820 support area.
* The stated level holds a lot of importance for the EURUSD pair, as it acted as a support on many occasions earlier.
* Today, the German Retail Sales report released by the Statistisches Bundesamt Deutschland posted a decrease of 0.2% in Dec 2015.
* The yearly change was also on the lower side, as it increased 1.5%, less than the forecast of 2%.
German Retail Sales
There were many releases in the Euro Zone today. The most important one was the German Retail Sales, which evaluates the changes in sales of the German retail sector and was reported by the Statistisches Bundesamt Deutschland. The market was expecting a rise of 0.5% in December 2015, compared with the preceding month. However, the result was a lot lower, as the German Retail Sales declined 0.2% in December 2015.
Looking at the yearly change, the German Retail Sales was forecasted to rise by 2% in December 2015, compared with Dec 2014. However, the output was again on the lower side, as the German Retail Sales gained 1.5%. In short, there was nothing in the report to encourage the Euro buyers. As a result, there was a downside reaction in the EURUSD pair.
The report added that “When adjusted for calendar and seasonal variations (Census-X-12-ARIMA), the December turnover was in real terms 0.2% and in nominal terms 0.5% smaller than that in November 2015. Compared with the previous year, turnover in retail trade was in the whole year 2015 in real terms 2.7% and in nominal terms 2.8% larger than in 2014”.
Technical Analysis – EURUSD
The EURUSD pair dived after the retail sales report, and tested the 1.0820 support area. There were a couple of support trend lines positioned around the stated level to prevent the downside move. If
buyers have to take the pair higher in the near term, then they have to prevent sellers breaking the 1.0820-00 support area. On the upside, the 1.0900 level can be seen as a resistance.
