The Euro was recovering against the US Dollar until it found sellers near 1.0680. There was an increase in the bearish pressure on the economic front as well, as there was a speculation that the ECB may broaden their bond buying programme. It ignited a downside reaction in the EURUSD pair and took it lower sharply.
There were some other economic releases in the Euro Zone that affected the trend in EURUSD. Some of them include, Italian Retail Sales, Italian Industrial orders and sales, and France consumer confidence. The outcomes were mixed due to which the EURUSD pair failed to recover the ground and traded lower. The pair even breached the 1.0600 support area and created a new weekly low.
Italian Retail Sales
The Italian Retail Sales, which is a measure of changes in sales of the Italian retail sector was released by the National Institute of Statistics. The forecast was slated for an increase of 0.5% in sales in September 2015, compared with the preceding month. However, the outcome was very disappointing, as there was a decrease in the sales by 0.1%. The only relief was the fact that the yearly change in the sales came in at 1.5% in September 2015 just as the market expected.
The report also stated that “average of the last three months compared to the previous three months increased by 0.2%”. Overall, the monthly change was disappointing, and sellers saw it as an opportunity to take the EURUSD pair.
In France, the Consumer Confidence Index, which measures the moods of the consumers, through an analysis of a sample of houses was released by INSEE. The market was expecting a decline from 96 to 95 in November 2015. However, the result was positive, as there was no decline in the index and it remained at 96.
Technically, the EURUSD pair is under a lot of bearish pressure. The pair had an important support at 1.0600, which was breached. The next level on the downside to keep an eye on is 1.0540. On the upside, the 1.0600-20 resistance area may act as a hurdle for buyers in the near term. Only a daily close above 1.0620 may reduce the amount of bearish pressure on the pair.