Key Points
- The Euro after trading as high as 1.4535 against the Canadian dollar started moving down.
- The EURCAD pair is currently trading near a major trend line support formed on the hourly chart, which holds the key for the Euro.
- In the Euro Zone, the German wholesale price Index released by the Statistisches Bundesamt Deutschland posted a gain of 0.6% in June 2016, more than the forecast.
- The Germany consumer price index registered a rise of 0.1% in June 2016, just as the market expected.
Technical Analysis
The Euro had an upper hand against the Canadian dollar, as it traded above the 1.4500 level recently, but later found sellers. The EURCAD pair moved down, and currently trading near a major trend line support formed on the hourly chart.
Moreover, the trend line is also positioned with the 50 hourly simple moving average, which may act as a support.
A break below the trend line support could ignite more losses in the short term.
Germany Consumer Price Index
Earlier today, the 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 Statistiches Bundesamt Deutschland. The forecast was slated for a rise of 0.1% in June 2016, compared with the previous month, and the result was as expected.
Moreover, the report added that “This year, a slightly higher rate than in June 2016 was measured only in January (+0.5%). Compared with the previous month, the consumer price index was up 0.1% in June 2016. The Federal Statistical Office (Destatis) thus confirms its provisional overall results of 29 June 2016.”
The market is looking nervous at this moment, which might ignite a break in the EURCAD pair.
