Key Points
- The Euro climbed higher recently and currently placed well above the 1.1635 vs the US Dollar.
- There is a solid bullish trend line forming with support at 1.1638 on the hourly chart of EURUSD.
- Today in the Euro Zone, the German Import price index for June 2017 was released by Deutsche Bundesbank.
- The outcome was below the forecast, as there was a decline of 1.1% (MoM), more than the forecast of -0.7%.
EURUSD Technical Analysis
The Euro climbed higher recently and managed to break the 1.1610 resistance against the US Dollar. The EURUSD pair traded as high as 1.1684 before starting a correction towards the 21 hourly simple moving average and the 1.1635 support.
Recently, the pair tested a solid bullish trend line with support at 1.1638 on the hourly chart and the 21 hourly simple moving average.
There was also a test of the 23.6% Fib retracement level of the last wave from the 1.1487 low to 1.1684 high. There are chances that the pair may resume the uptrend and may soon break the 1.1680 resistance for more gains.
German Import Price Index
Today in the Euro Zone, the German Import price index for June 2017 was released by Deutsche Bundesbank. The market was positioned for a decline of 0.7% compared with the previous month.
The actual result was below the forecast, as there was a decline of 1.1%. In terms of the yearly change, there was a rise of 2.5% in June 2017, less than the forecast of 2.9%. The report added that:
The index of export prices increased by 1.8% in June 2017 compared with the corresponding month of the preceding year. In May 2017 and in April 2017 the annual rates of change were +2.2% and +2.6%, respectively. From May 2017 to June 2017 the export price index fell by 0.2%.
Overall, the EURUSD pair may consolidate for some time before breaking the 1.1680 resistance.
