Euro Looks Set for More Losses?

* Euro was under bearish pressure throughout this week against the US Dollar, and a downside move was initiated after the fed increased interest rates from 0.25% to 0.5%.

* French Producer Price Index released by INSEE posted an increase of 0.1% in November 2015, less than the last rise of 0.2%.

* Euro Zone Current Account released by European Central Bank posted a trade surplus of €20.4B in October 2015, less than the last €30.1B (revised).

Euro Zone Current Account

Today, the Euro Zone Current Account, which is a net flow of current transactions, including goods, services, and interest payments into and out of the Euro-Zone was released by European Central Bank. The outcome was not as per the market expectation, as there was a trade surplus of €20.4B was recorded in October 2015, which was on the lower side when compared with the last €30.1B (revised).

When we look at the yearly change in the current account balance, then there was a surplus of €299.9 billion (2.9% of euro area GDP). It was on the higher side compared with the last surplus of €237.5 billion (2.4% of euro area GDP) for the 12 months to October 2014, as per the report published.

Moreover, the report added that the “increase in the current account surplus was largely due to an increase in the surplus for goods (from €239.6 billion to €313.6 billion) and, to a lesser extent, an increase in the surplus for primary income (from €57.9 billion to €67.0 billion)”

Overall, the report was not that could have ignited a downside move in the EURUSD pair. However, the sentiment is bearish for the pair, which is taking the shared currency down.

Technical Analysis – EURUSD

The EURUSD pair is currently trading near an important support area of 1.0800-20. If sellers gain control and takes the pair below the stated level, then there are chances of more losses in the near term. On the upside, an initial resistance is around the 1.0850-60 area, followed by 1.0900-20.