Why did the Euro Drastically Decline?

Today's fundamental data for the euro zone supported the euro in the first half of the day, but it failed to break through the significant resistance level 1.1380.

Data from the national statistics agency Insee showed that the index of consumer confidence in France in June this year grew much stronger than projected.

According to the report, the consumer confidence index rose to 108 points in June, while the reading for May was revised upward from 102 to 103. Economists had predicted that the index will grow by only one point in June.

Household lending in the euro area also continued to grow in May.

Today, the German Finance Minister Wolfgang Schaeuble issued his forecast on the time frame for raising interest rates in the eurozone.

As for the technical picture, the euro fell sharply at the beginning of the North American session, more than 80 from the highs of the day.

It is possible that traders rushed to take profits ahead the next speech by the President of the European Central Bank, against the backdrop of some inside information, after yesterday's significant euro gain of more than 170 points paired with the US dollar.

The fall of the euro may also be due to a common technical error, recently observed in gold, which fell within 5 minutes from the level of 1253 to the level of 1236, after which the entire decline was won.

In any case, the large levels that are now located in the region of 1.1300 and 1.1270, can provide significant support to the trading instrument and it is unlikely that large players will miss such an opportunity to reset the portfolio.

The British pound managed to continue its rally against the US dollar, rebounding from intermediate levels of support in the morning after the release of data that pointed to the growth in housing prices in the UK, which shows the solid position of the labor market.

According to Nationwide, housing prices rose by 1.1% in June compared with the previous month after a decline of 0.2% in May.

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The material has been provided by InstaForex Company - www.instaforex.com