Key Points
- The Euro after correcting towards 1.0620 against the US Dollar found sellers and moved down.
- The EURUSD pair is trading near a major support trend line on the hourly chart, which may be broken soon.
- Today in the Euro Zone, the German Import price index was released by Deutsche Bundesbank.
- There outcome was lower, as there was an increase of 0.3% in Oct 2016, compared with the forecast of 0.7%.
EURUSD Technical Analysis
The Euro after trading as low as 1.0563 against the US Dollar corrected higher. However, the EURUSD pair found sellers near the 50% Fib retracement level of the last decline from the 1.0682 high to 1.0563 low, and started to trade lower.
The pair moved down and settled below the 21 hourly simple moving average. At the moment, the pair is trading near a major support trend line on the hourly chart, which may be broken for a downside move.
So, if you are looking to sell, then consider it with a break below the trend line support.
German Import Price Index
Today in the Euro Zone, the German Import price index, which measures the change in prices for goods imported by German was released by Deutsche Bundesbank.
The market was aligned for an increase of 0.7% in Oct 2016, compared with the previous month. However, the result was a bit lower, as there was a rise of 0.3%. The report stated that the “index of export prices decreased by 0.1% in October 2016 compared with the corresponding month of the preceding year. In September and in August 2016 the annual rates of change were –0.6% and –0.9%, respectively. From September to October 2016 the export price index rose by 0.3%“.
Overall, the EURUSD has less reasons for an upside move, so it may break the trend line for a downside move.
