EURUSD – Is This a Correction Phase?

Euro dived sharply against the US Dollar, as there was a lot of bearish pressure noted on the EURUSD pair.

In the Euro Zone today, the German Factory orders released by the Deutsche Bundesbank registered an increase of 0.6% in July 2015, whereas the market was expecting it to rise by 2.1%.

In terms of the monthly change, there was a decline of 1.4%, compared with the expectation of a 0.5% decrease.

German Factory Orders

Earlier during the London session, the German Factory orders, which is an indicator that includes shipments, inventories, and new and unfilled orders was released by the Deutsche Bundesbank. The market was expecting a rise of 2.1% in the July 2015, compared with the same month a year ago. However, the outcome was disappointing, as the German Factory orders increased by 0.6%.

Looking at the monthly change, then the German Factory orders decreased by 1.4% in July 2015, compared with the preceding month. This was well below the forecast, as the market was expecting a decline of only 0.5%.

Overall, the data was on the lower side, which had an impact on the Euro. It acted as a hurdle for the Euro for more gains.

French Confidence

The French Consumer Confidence, which measures the level of consumer confidence in economic activity was published by INSEE. The report was disappointing, as there was no increase in the confidence as the market expected and it stayed at 93 in August 2015.

Swiss CPI

There was an important release in Switzerland, as the Consumer Price Index, which measures the average price change for all goods and services purchased by households for consumption purposes was issued by the Swiss Federal Statistical Office. The outcome was in line with the forecast, as there was a decrease of 0.2% in the CPI in August 2015.

Technical Analysis – EURUSD

There was a monster decline in the EURUSD pair, as it traded lower to trade near 1.1090-80 where it found buyers. The pair is now making an attempt to move higher, but there might a case that the current move may be only a part of correction. The 1.1150-60 resistance area is very important and might play a crucial role for more upsides moving ahead.