Key Points
- The Euro made a nice upside move and traded above 1.0730 against the US Dollar.
- There is a major bullish trend line formed with support at 1.0715 on the hourly chart of EURUSD.
- Earlier today in the Euro Zone, the German Producer Price Index for March 2017 was released by the Statistisches Bundesamt Deutschland.
- The outcome was lower than the forecast, as there was no change in the PPI in March 2017 (MoM), compared with the +0.1% forecast.
EURUSD Technical Analysis
The Euro started a solid bullish move above 1.0640 against the US Dollar, and moved above 1.0730. There was a high formed near 1.0738 from where the EURUSD pair dipped and traded below the 23.6% Fib retracement level of the last wave from the 1.0642 low to 1.0738 high.
The downside move was prevented near a major bullish trend line formed with support at 1.0715 on the hourly chart along with the 21 hourly simple moving average.
The pair bounced from the trend line and the 38.2% Fib retracement level of the last wave from the 1.0642 low to 1.0738 high, and now trading above the 1.0738 high. There are chances of EURUSD extending gains above 1.0760 in the near term.
German Producer Price Index
Today in the Euro Zone, the German Producer Price Index for March 2017 was released by the Statistisches Bundesamt Deutschland. The forecast was lined up for the average changes in prices in the German primary markets to increase by 0.1% in March 2017, compared with the previous month.
The result was lower than the forecast, as there was no change in the PPI in March 2017 (MoM), compared with the +0.1% forecast. In terms of the yearly change, there was a rise of 3.1%, just as the market expected. The report added that “In March 2017 the price indices of all main industrial groups rose compared with March 2016: Energy prices increased by 4.5%, though prices of the different energy carriers diverged. Prices of petroleum products increased by 16.2%, whereas prices of natural gas (distribution) decreased by 7.2%”.
Overall, the EURUSD pair may continue to move higher, and dips near 1.0715 remains supported in the short term.
