Key Points
- The Euro after trading below 1.1000 found support and moved higher against the US Dollar.
- There was a bearish trend line formed on the hourly chart of the EURUSD pair, which was broken during the upside move.
- Today, the Spanish Producer Price Index was released by the INE during the European session.
- There was a decline of 4.7% in the Producer Price Index in June 2016.
Technical Analysis
The Euro after tumbling against the US Dollar found support near 1.0950 and started to move higher. During the upside move, the EURUSD pair managed to clear a bearish trend line formed on the hourly chart. The same broken trend line was later seen acting as a support area for the Euro buyers.
The pair has now settled above the 21 hourly simple moving average, which is positive sign and may push the pair further higher in the near term.
The pair is also above the 50% Fib retracement level of the last drop from the 1.1058 high to 1.0952 low, which is a sign of a short-term bullish break.
Spanish Producer Price Index
Today, the Producer Price Index, which measures the average changes in prices in primary markets of Spain by producers of commodities in all states of processing was released by the INE. The result was disappointing, as there was a decline of 4.7% in June 2016, compared with the same month a year ago.
Overall, there was nothing much during the European session to impact the path of the Euro against other major currencies.
It looks like the recent break in the EURUSD pair is promising and may help it to gain traction. There is even a chance of a move towards the 1.1040 level.
