Key Points
- Euro traded down against the Australian Dollar and it looks like there are more downsides left.
- There was a bullish trend line formed on the hourly chart of the EURAUD pair earlier, which was broken recently to clear the way for more losses.
- German Consumer Price Index released by the Federal Statistical Office posted an increase of 0.8% in March 2016, same as the forecast.
- Moreover, the HICP which is an index of consumer prices also posted a rise of 0.8% in March 2016.
Technical Analysis
The Euro stayed in the bullish zone against the US Dollar, but it was seen struggling against the Aussie Dollar. There was a bullish trend line formed on the hourly chart of the EURAUD pair earlier, which was broken recently by the Euro sellers.
The pair is now trading below the 100 and 200 hourly simple moving average, which is a bearish sign and could take the pair further down.
On the upside, an initial resistance could be around the 23.6% Fib retracement level of the last drop from the 1.5160 high to 1.4883 low. One may even consider selling rallies in the near term.
German CPI
Today, the German 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 the Federal Statistical Office. The outcome was in line with the forecast, as the German CPI rose 0.8% in March 2016, compared with February 2016.
Moreover, in terms of the yearly change, the Consumer prices in Germany increased by 0.3% in March 2016 compared with March 2015. The report added that “Consumers had to pay slightly more only for electricity (+0.2%). Excluding energy prices, the inflation rate in March 2016 would have been markedly higher (+1.4%)”.
The outcome was not negative for the Euro, but the trend is bearish for EURAUD. So, there may be more losses in the near term.
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