Key Points
- The Euro managed to gain bids recently against the US Dollar, and moved past 1.0650.
- The EURUSD pair remains supported on the downside near a bullish trend line on the hourly chart at 1.0660.
- Today in the Euro Zone, the Germany consumer price index was released by the Statistisches Bundesamt Deutschland.
- The result was in line with the forecast, as there was an increase of 0.7% in Dec 2016, compared with Nov 2016.
EURUSD Technical Analysis
The Euro made a nice upside move from the 1.0600 low against the US Dollar, and moved above the 1.0650 resistance. There was also a break above the 21 hourly simple moving average at 1.0620.
The EURUSD pair traded as high as 1.0720 before starting a correction. On the downside, there is a bullish trend line on the hourly chart, which may act as a support near 1.0660.
The pair remains supported on the downside, and one may consider buying dips close to the 1.0670 and 1.0660 with a stop below the 21 hourly SMA.
German CPI
Earlier during the London session, the German Germany consumer price index, which measures the average price change for all goods and services purchased by households for consumption purposes was released by the Statistisches Bundesamt Deutschland.
The market was positioned for an increase of 0.7% in Dec 2016, compared with Nov 2016. The result was in line with the forecast, and even the yearly change posted an expected rise of 1.7%. The report added that the “low 2016 inflation rate was largely due to the development of energy product prices. On the whole, prices of energy products fell markedly by 5.4% in 2016 on 2015”
Overall, the Euro remains in an uptrend, and there is a real chance of EURUSD breaking the last swing high of 1.0720.
