Key Points
- The Euro recently made a top near 0.8900 and started moving down against the British Pound.
- There was a break below a major bullish trend line 0.8850 on the hourly chart of EURGBP.
- Today in the Euro Zone, the Germany consumer price index for June 2017 was released by the Statistisches Bundesamt Deutschland.
- The outcome was around the forecast, as there was a rise of 0.2% compared with the previous month.
EURGBP Technical Analysis
The Euro traded higher this week close to the 0.8900 handle against the British Pound where it faced sellers. The EURGBP pair moved down and broke a major support area at 0.8875 along with the 21 hourly simple moving average.
The pair also cleared a major bullish trend line 0.8850 on the hourly chart, which opened the doors for a downside move towards 0.8820.
The pair recently tested the 0.8820 support and struggling to hold the same. So, there is a chance of it extended declines and testing 0.8800 in the short term. Below 0.8800, there can be a nasty dip towards 0.8760.
Germany Consumer Price Index
Today in the Euro Zone, the Germany consumer price index for June 2017 was released by the Statistisches Bundesamt Deutschland. The market was positioned for a minor increase of 0.2% in the index compared with the previous month.
The actual result was around the forecast, as there was a rise of 0.2%. Looking at the yearly change, the index rose 1.6%, which was again similar to the forecast. The report added that:
Food prices rose 2.8% from June 2016 to June 2017. The year-on-year increase in food prices thus accelerated again in June 2017 (May 2017: +2.4%; April 2017: +1.8%).
Overall, the EURGBP has hardly any reason to bounce, and may struggle to remain above the 0.8810-00 support area in the near term.
