Key Points
- The Euro was seen trading with a lot of positive bias against the US Dollar recently.
- There is a major bullish trend line formed on the hourly chart of the EURUSD pair, which may act as a support if the pair moves down.
- The German Producer Price Index was released by the Statistisches Bundesamt Deutschland.
- The outcome was positive, as there was a rise of 0.2% in July 2016, more than the forecast of 0.1%.
EURUSD Technical Analysis
The Euro was seen surging across the board, including against the US Dollar. There was a move above the 1.1300 level, which is a positive sign. A major bullish trend line formed on the hourly chart of the EURUSD pair, which can be seen as a buy zone if the pair corrects lower.
Moreover, on the downside, the 21 hourly simple moving average along with 50% Fib retracement level of the last wave from the 1.1238 low to 1.1366 high may also act as a support.
On the upside, if the EURUSD climbs further, then 1.1400 level may be tested.
German Producer Price Index
Today during the London session, the Producer Price Index, which measures the average changes in prices in the German primary markets was released by the Statistisches Bundesamt Deutschland.
The market was expecting a rise of 0.1% in the PPI in July 2016, compared with the previous month. However, the result was above the forecast, as there was an increase of 0.2%. Furthermore, the report stated that “The report added that the “underlying pattern in the quantity bought, as suggested by the 3 month on 3 month movement, increased by 1.6%. Compared with May 2016, the quantity bought in the retail industry is estimated to have decreased by 0.9%. Average store prices (including petrol stations) fell by 2.5% in June 2016 compared with June 2015”.
The result was positive, which may further lift the market sentiment in favor of the Euro in the short term.
