Key Points
- Euro traded down against the US Dollar during the past two sessions, and looks poised for more declines.
- There was a bullish trend line formed on the hourly chart of the EURUSD pair earlier, which was broken by the Euro sellers recently.
- France Consumer Price Index released by INSEE posted an increase of 0.8% in March 2016, more than the forecast of 0.7%.
- Spanish Consumer Price Index on the other hand registered a decline of 0.8% in March 2016.
Technical Analysis
The Euro continued to face selling pressure during the past couple of sessions, and as a result it fell below the 1.1340 level against the US Dollar. There was a bullish trend line formed on the hourly chart of the EURUSD pair earlier, which was broken by the bears.
The recent break in the EURUSD pair looks real, as the pair traded below the 100 and 200 hourly simple moving average.
Selling rallies can be considered in the near term as the pair may test the 1.1300 support area.
France and Spanish CPI
Today, the France Consumer Price Index, measuring the price movements by the comparison between the retail prices of a representative shopping basket of goods and services was released by INSEE. The market was expecting an increase of 0.7% in the CPI, but the result was better. The French CPI rose 0.8% in March 2016.
Moreover, the Spanish Consumer Price Index was also released, which registered a decline of 0.8% in March 2016. In terms of the monthly change, there was a rise of 0.6%, which was in line with the market forecast.
There was hardly anything encouraging for the Euro bulls, which is the reason why we may see more losses in EURUSD in the short term.
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