Categories: Fundamental Analysis

Can EURUSD Move Down Post Disappointing German Data?

* There were a couple of economic releases lined up in the Euro Zone today, which failed to meet market expectation.

* EURUSD was not affected a lot, and it looks like it may head towards the 1.0920 levels.

* German Trade Balance released by the Statistisches Bundesamt Deutschland posted a trade surplus of €19.7B in November 2015, less than the forecast of €20.0B.

German Trade Balance

Today, the German Trade Balance, which is a balance between exports and imports of total goods and services was released by the Statistisches Bundesamt Deutschland. The forecast was lined up for a trade surplus of €20.0B in November 2015. However, the result was lower compared with the forecast, as the German Trade Balance posted a trade surplus of €19.7B in November 2015. If we analyze carefully, then the outcome was not disappointing.

The report stated that “Germany exported goods to the value of 102.2 billion euros and imported goods to the value of 81.7 billion euros in November 2015. Based on provisional data, the Federal Statistical Office (Destatis) also reports that German exports increased by 7.7% and imports by 5.3% in November 2015 year on year”.

Moreover, the German Industrial Production report was also released. The market was poised for a rise of 0.5% in November 2015, compared with the preceding month, but the result was very disappointing. The German Industrial Production declined 0.3% in November 2015, and in terms of the yearly change the German IP fell 0.3% in November 2015, compared with Nov 2015.

Technical Analysis – EURUSD

The EURUSD pair recovered well this week against the US dollar, and even traded above the 1.0900 level once. The pair is currently correcting lower, but there is a major support around 1.0840. If the pair corrects further from here, then buyers may take a stand around the stated level. Any further losses might call for a change in trend for the EURUSD pair.

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.

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