Key Points
- The Euro traded higher recently against the US Dollar, but failed to break the 1.0450 resistance.
- The EURUSD pair has a couple of bearish trend lines formed on the hourly chart, which are acting as a resistance.
- In the Euro Zone, the German Producer Price Index was released by the Statistisches Bundesamt Deutschland.
- The result was positive, as there was an increase of 0.1% in Nov 2016, compared with the forecast of a 0.1% decline.
EURUSD Technical Analysis
The Euro after a monster decline towards 1.0350 recovered against the US Dollar. However, the upside move failed near the 38.2% Fib retracement level of the last decline from the 1.06763 high to 1.0365 low.
Moreover, there are a couple of bearish trend lines formed on the hourly chart of EURUSD, which acted as a hurdle and currently preventing an upside move.
The pair is also below the 21 hourly simple moving average, calling for more losses. One may consider selling with a stop above the trend line and aim 1.0370.
German Producer Price Index
Today in the Euro Zone, the Producer Price Index, which measures the average changes in prices in the German primary markets was released by the Statistisches Bundesamt Deutschland. The market was positioned for a decline of 0.1% in Nov 2016, compared with the previous month.
However, the result was positive, as there was an increase of 0.1% in Nov 2016. The report stated that “In November 2016 energy prices decreased by 1.7% compared with November 2015, prices of intermediate goods rose by 0.4%. In contrast prices of non-durable consumer goods rose by 1.5%, prices of capital goods by 0.6% and prices of durable consumer goods by 1.0%”.
Overall, the result was on the positive side, but the Euro failed to gain on it and may decline back towards the 1.0365 low.
