Key Points
- The Euro moved higher after forming a support at 1.1168 against the US Dollar.
- The EURUSD pair broke a short-term bearish trend line at 1.1210 on the hourly chart, but could not gain momentum.
- Today, the Germany consumer price index for May 2017 was released by the Statistisches Bundesamt Deutschland.
- The outcome was in line with the forecast, as the CPI declined by 0.2% (MoM).
EURUSD Technical Analysis
The Euro was under pressure recently and traded below the 1.1200 level to test the 1.1170 support against the US Dollar. The EURUSD pair formed a support at 1.1169 and started a correction wave.
It broke the 23.6% Fib retracement level of the last drop from the 1.1270 high to 1.1169 low and the 21 hourly simple moving average. Recently, the pair cleared a short-term bearish trend line at 1.1210 on the hourly chart.
However, there was no real momentum after the break, and the pair failed to clear the 1.1225 resistance. It is once again moving down, but may find support near a bullish trend line at 1.1200 for an upside move.
Germany Consumer Price Index
Recently in the Euro Zone, the Germany consumer price index for May 2017 was released by the Statistisches Bundesamt Deutschland. The market was positioned for a decline of 0.2% in the CPI in May 2017, compared with the previous month.
The result was in line with the forecast, as the CPI declined by 0.2%. In terms of the yearly change, there was a rise of 1.5% in the CPI, just as the market expected. The report added that “Energy prices were up 2.0% in May 2017 compared with a year earlier (April and March 2017: +5.1% each). The impact of the energy price development on the inflation rate diminished markedly. In May 2017, especially mineral oil products were more expensive than a year earlier”.
Overall, the EURUSD pair remains supported on the downside at 1.1205-00, and may trade higher in the near term.
