- – The Euro made a solid upside move this week and traded above 1.1020 against the US Dollar.
- – There is a major bullish trend line formed with support at 1.1100 on the hourly chart of EUR/USD.
- – Today in the Euro Zone, the German Producer Price Index for April 2017 released by the Statistisches Bundesamt Deutschland posted an increase of 0.4%.
German Producer Price Index
In the Euro Zone today, the German Producer Price Index for April 2017 was released by the Statistisches Bundesamt Deutschland. The market was positioned for the PPI to increase by 0.2% in April 2017, compared with the previous month.
However, the result was well above the forecast, as the German Producer Price Index increased 0.4%. In terms of the yearly change, there was an increase of 3.4% in April 2017, more than the forecast of 3.2%. The report highlighted that “Energy prices rose by 4.6%, though the development of prices of the different energy carriers diverged. Prices of petroleum products increased by 14.9% and prices of electricity by 8.2%, whereas prices of natural gas (distribution) decreased by 6.1%”.
Overall, the EUR/USD has all the reasons to march higher, and it may soon trade above the next hurdle at 1.1200.
EUR/USD Technical Analysis
The Euro is in a nasty uptrend as it broke the 1.1000 and 1.1020 resistance levels against the US Dollar. The upside move was such that the EURUSD pair also broke the 1.1100 level to trade towards the 1.1200 handle.
However, there was no test of 1.12000, as the pair traded as high as 1.1170. Later, there was a tiny correction wave initiated, as the pair moved towards the 1.1080 support zone. At 1.1080, the 23.6% Fib retracement level of the last wave from the 1.0838 low to 1.1170 high acted as a barrier and prevented losses.
Moreover, there is a major bullish trend line with support at 1.1100 on the hourly chart, which is acting as a buy zone and holding declines. As long as the pair is above the highlighted trend line support area or 1.1100, there is a chance of EUR/USD testing the 1.1200 handle or even clearing it for further gains.Tags: EUR/USD Technical Analysis, Euro, German Producer Price Index, US Dollar