This week reported EURO with the very bad status of the red labeled candle and hence pushes it down against the US Dollar with the price of 1.1224, Although two weeks back it enjoyed the smooth progress momentum, and peaked its price up to 1.1334 from the price 1.1089, this was one of the highest achievement of the EURUSD.
But unfortunately, this week updated itself with the uncertainty of rising and fall, on the one day, EURUSD forms the bullish move and then on the next day, it dropped itself and thus removed the impact of risen price.
Today’s drop may be caused because of the Depreciated Trade balance, which is released by the Statistisches Bundesamt Deutschland on June 09, 2020. The trade balance was recorded with a figure of €12.8 B in May, whereas it is declared with a figure of €3.5 B on June 09, 2020, and this figure is also the worst from the analyst estimated figure of € 10 B.
Trade Balance provides an early indication of net export output. If a constant production is seen in exchange for Australian exports, that would turn into a positive trade balance growth and that should be positive for the EUR.
With full support from its level of support that operates on the back of the market and constantly seeks to lift it. First, there is the support of the Fibonacci level which supports it at 1.1116, then there is the support of the trendline line at 1.0969, and then at 1.0835, the main horizontal support stands as seen in the following above graph.
As EURUSD showed higher movement on the graph, the technical bias may remain bullish, thus opening up its ground for short- and medium-sized trading holders.