Key Points
- The Euro after tumbling towards the 1.1150 against the US Dollar found support and traded higher.
- The EURUSD pair traded higher and cleared the 21 hourly simple moving average.
- Today, the German Producer Price Index was released by the Statistisches Bundesamt Deutschland.
- The outcome was disappointing, as there was a decline of 0.1% in August 2016, compared with the previous month.
EURUSD Technical Analysis
The Euro recently fell towards the 1.1150 support area against the US Dollar where the bulls protected the downside. The EURUSD pair is currently moving higher, but finding sellers near a bearish trend line formed on the hourly chart.
The trend line also coincides with the 38.2% Fib retracement level of the last drop from the 1.1285 high to 1.1150 low.
So, there are chances of more declines in the near term in EURUSD towards the 21 hourly SMA or even lower.
German Producer Price Index
Earlier during the London session, the Producer Price Index, which measures the average changes in prices in the German primary markets was released by the Statistisches Bundesamt Deutschland. The forecast was lined up for no change in the Producer Price Index in August 2016, compared with the previous month.
However, the actual outcome was disappointing, as there was a decline of 0.1%. In terms of the yearly change, there was a decrease of 1.6%. The report added that “In August 2016 energy prices decreased by 5.5% compared with August 2015, prices of intermediate goods fell by 1.6%. In contrast prices of non-durable consumer goods rose by 0.7%, prices of capital goods by 0.6% and prices of durable consumer goods by 1.2%“.
Overall, the Euro may decline from the current levels against the US Dollar and might test the 21 hourly SMA.
