Key Points
- The Euro moved down recently, and broke a major support area at 1.1165 against the US Dollar.
- There is a crucial bearish trend line with resistance at 1.1160-70 formed on the hourly chart of EURUSD.
- Recently in the Euro Zone, the German Import price index for April 2017 was released by Deutsche Bundesbank.
- The outcome was lower than the forecast, as there was a rise of 6.1% in April 2017 (YoY), less than the forecast +6.3%.
EURUSD Technical Analysis
The Euro after struggling to remain above 1.1240 against the US Dollar started a downside move and broke the 1.1220 support area. The EURUSD pair also broke the 1.1200 support and the 21 hourly simple moving average.
The most important break was below the 1.1165 support, which ignited further losses towards 1.1125. The pair may attempt a minor recovery, but likely to face sellers near the 23.6% Fib retracement level of the last decline from the 1.1193 high to 1.1125 low at 1.1141.
There is also a crucial bearish trend line with resistance at 1.1160-70 formed on the hourly chart. So, selling rallies towards 1.1140-60 may be considered in the short term.
German Import Price Index
Recently in the Euro Zone, the German Import price index for April 2017 was released by Deutsche Bundesbank. The market was positioned for the Import price index to rise by around 6.3% in April 2017, compared with the same month a year ago.
The result was lower than the forecast, as there was a rise of 6.1% in April 2017 (YoY). In terms of the monthly change, there was a decline of 0.1% in the index. The report added that the “index of export prices increased by 2.6% in April 2017 compared with the corresponding month of the preceding year. In March 2017 and in February 2017 the annual rates of change were +2.3% and +2.5%, respectively. From March 2017 to April 2017 the export price index rose by 0.2%”.
Overall, the EURUSD remains at a risk of more declines below 1.1125 in the near term if sellers remain in action.
