The Euro (EUR) inched lower against the US Dollar (USD) on Monday, decreasing the price of EUR/USD to less than 1.0700 following the US trade balance report.  The technical bias remains bearish because of a lower low in the recent downside wave.

Technical Analysis

As of this writing, the pair is being traded around 1.0676.  A support may be seen near 1.0576, the trendline support area as demonstrated in the given below daily chart with brown color. A break and daily closing below the 1.0576 trendline support shall incite renewed selling pressure, validating a move towards the 1.0500 support which is a psychological number.

On the upside, a hurdle may be noted near 1.0790, the 61.8% fib level as well as short term horizontal resistance ahead of 1.0811, the upper trendline resistance as well as 50% fib level. A break and daily closing above the 1.0811 resistance shall incite renewed buying interest, validating a move towards the 1.0905 resistance zone. The technical bias shall remain bearish as long as the 1.0905 resistance zone is intact.

US Trade Balance

The U.S. trade deficit fell more than expected in February as exports increased to a two-year high and slowing domestic demand weighed on imports. The Commerce Department said on Tuesday the trade gap declined 9.6 percent to $43.6 billion. January’s trade deficit was revised down to $48.2 billion from $48.5 billion. Economists polled by Reuters had forecast the trade gap falling to $44.8 billion in February. When adjusted for inflation, the deficit decreased to $59.7 billion, with exports of goods the highest on record. The real trade deficit was $65.1 billion in January.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels can be a good in short to medium term.