Key Points
- The Euro after trading as low as 0.8968 versus the British Pound found support, and recovered.
- There is a bullish trend line formed on the hourly chart of the EURGBP pair, acting as a support.
- Today in the Euro Zone, the Spanish Consumer Price Index was released by the National Institute of Statistics.
- The outcome was on the lower side, as there was no change in the CPI in Sep 2016 where the market was expecting +0.1%.
EURGBP Technical Analysis
The Euro after failing near 0.9142 against the British Pound declined and traded as low as 0.8968. The Euro bulls then somehow managed to prevent the downside and pushed the EURGBP pair higher.
Currently, there is a bullish trend line formed on the hourly chart of the EURGBP pair, which is holding the recovery momentum.
The pair is also above the 21 hourly simple moving average, which is a positive sign, and may lift the pair in the short term towards 0.9080.
Chinese Trade Balance
Today in the Euro Zone, the Spanish Consumer Price Index, which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services was released by the National Institute of Statistics
The market was expecting a rise of +0.1% in Sep 2016, compared with the previous month. However, the result was disappointing, as there was no increase in the CPI. The Spanish HICP was also disappointing, as the market was expecting an increase of 0.8% in Sep 2016, compared with the previous month. However, it came in at 0.7%.
The Euro is currently above the trend line support, and as long as it is above it, there is a chance of an upside move.
