Key Points
- The Euro made a nice upside move and traded above 1.1800 against the US Dollar.
- There is a monster contracting triangle forming with support at 1.1810 on the hourly chart of EURUSD.
- Today in the Euro Zone, the Spanish Consumer Price Index for Sep 2017 was released by the National Institute of Statistics
- The outcome was in line with the forecast as there was a rise of 0.2% in the CPI (MoM).
EURUSD Technical Analysis
The Euro made good ground recently and moved above the 1.1800 resistance against the US Dollar. The EURUSD pair is now trading comfortably above the 1.1800 level and the 21 hourly simple moving average.
It seems like there is a monster contracting triangle forming with support at 1.1810 on the hourly chart. The triangle support is near the 50% Fib retracement level of the last wave from the 1.1796 low to 1.1836 high.
A break above the triangle resistance at 1.1840 would open the doors for more gains probably towards 1.1900. On the downside, the 1.1800 area can be considered as a buy zone in the short term.
Spain’s CPI
Recently in in the Euro Zone, the Spanish Consumer Price Index for Sep 2017 was released by the National Institute of Statistics. The market was positioned for the CPI to increase by 0.2% compared with the previous month.
The actual result was in line with the forecast as there was a rise of 0.2% in the CPI. Looking at the yearly change, there was a rise of 1.8%, which was better than the last +1.6%, but similar to the forecast. On the other hand, the HICP rose 1.8%, less than the forecast of 1.9% (YoY) in Sep 2017.
Overall, the EURUSD pair remains in the bullish zone above 1.1800 and eyeing further upsides in the near term.
