- – The Euro faced sellers near 1.1855 against the US Dollar recently and corrected lower.
- – There is a major contracting triangle forming with resistance near 1.1850 on the hourly chart of EUR/USD.
- – Recently in the Euro Zone, the German Producer Price Index for Sep 2017 was released by the Statistisches Bundesamt Deutschland.
- – The outcome was above the forecast of 0.1%, as there was a rise in the PPI by 0.3% (MoM).
Recently in the Euro Zone, the German Producer Price Index for Sep 2017 was released by the Statistisches Bundesamt Deutschland. The market was positioned for a rise in the PPI by 0.1% compared with the previous month.
The actual result was in line with the forecast of +0.1%, as there was a rise in the PPI by 0.3%. Looking at the yearly change, the market was looking for an increase of 2.9% in the PPI in Sep 2017, and the actual was again better as there was a rise of 3.1%. It was also better than the last +2.6%. The report added:
Prices of non-durable consumer goods rose by 3.4%, prices of intermediate goods by 3.6%. Energy prices rose by 4.6%, though the development of prices of the different energy carriers diverged.
The result was positive and might push the EUR/USD pair towards the 1.1840-50 resistance area.
EUR/USD Technical Analysis
The Euro recovered well from the 1.1730 swing low against the US Dollar. The EUR/USD pair gained pace recently and traded above the 1.1800 and 1.1840 resistance levels. However, the upside move was capped by the 1.1850-60 levels.
The pair is currently correcting lower and already traded below the 23.6% Fib retracement level of the last wave from the 1.1729 low to 1.1857 high. It seems like there is a major contracting triangle forming with resistance near 1.1850 on the hourly chart.
At the moment, the pair is trading near the triangle support and the 38.2% Fib retracement level of the last wave from the 1.1729 low to 1.1857 high. It remains in the bullish zone as long as above 1.1800 and the 100 hourly simple moving average.
There can be more gains in the short term, but buyers need to push the pair above the 1.1850 resistance to avoid any declines going forward.Tags: EUR/USD, EUR/USD Technical Analysis, Euro, US Dollar