Key Points
- The Euro after trading as high as 1.3901 against the Aussie dollar started correcting lower.
- A previous broken bearish trend line on the hourly chart of EURAUD is now acting as a support near 1.3810.
- Today, the German Producer Price Index for Jan 2017 was released by the Statistisches Bundesamt Deutschland.
- The result was better than the forecast, as there was a rise of 0.7% in Jan 2017, compared with the previous month.
EURAUD Technical Analysis
The Euro made a nice upside move towards 1.3900 recently against the Aussie dollar before finding resistance. The EURAUD pair is currently moving down, and trading near a broken bearish trend line on the hourly chart of EURAUD with support at 1.3810.
On the upside, there is a bearish trend line on the same chart with resistance at 1.3830. Also, the 21 hourly simple moving average is near 1.3840 to act as a resistance.
However, it looks like the pair is finding bids near 1.3820 and might move higher in the short term towards 1.3860-80. The pair may even test 1.3900 if it gains pace.
German Producer Price Index
Today in the Euro Zone, the German Producer Price Index for Jan 2017 was released by the Statistisches Bundesamt Deutschland. The market was expecting an increase of around 0.2% in the average changes in prices in the German primary markets in Jan 2017, compared with the previous month.
The result was better than the forecast, as there was a rise of 0.7% in Jan 2017. The report added that “In January 2017 the index of producer prices for industrial products rose by 2.4% compared with the corresponding month of the preceding year. This was the highest annual rate of change since March 2012 (+2.6%). In December 2016 the annual rate of change all over had been 1.0%”.
Overall, the Euro might head higher once again vs the Aussie dollar, and there are chances of a test of 1.3880 or 1.3900.
