- – The Euro failed to close above 1.0900 against the US Dollar and moved down.
- – The EUR/USD pair traded lower, and broke a major support trend line at 1.0810 on the hourly chart.
- – The German Import price index for Feb 2017 released by Deutsche Bundesbank posted a rise of 0.7%, more than the +0.3% forecast.
German Import Price Index
Today in the Euro Zone, the German Import price index for Feb 2017 was released by Deutsche Bundesbank. The market was positioned for a rise of +0.3% in the index in Feb 2017, compared with the previous month.
However, the outcome was better, as the German Import price index increased 0.7% in Feb 2017. When we consider the yearly change, the index rose 7.4%, which was more than the forecast of 7%. The report added that the “index of export prices increased by 2.5% in February 2017 compared with the corresponding month of the preceding year. In January 2017 and in December 2016 the annual rates of change were +1.8% and +1.1%, respectively”.
Overall, the result was positive, but the EUR/USD failed to move back above 1.0810, and might continue to trade lower.
EUR/USD Technical Analysis
The Euro after trading as high as 1.0905 failed to maintain the momentum against the US Dollar and started trading lower. First, the EUR/USD pair broke the 23.6% Fib retracement level of the last wave from the 1.0759 low to 1.0905 high, which ignited further declines.
Later, the pair broke the 1.0850 support and the 50% Fib retracement level of the last wave from the 1.0759 low to 1.0905 high. It prompted a move below the 100 hourly simple moving average at 1.0820. And finally, the pair broke a major support trend line at 1.0810 on the hourly chart.
The pair traded below the 1.0800 handle and currently positioned for more declines. There is a chance of a minor correction from the 1.0780 level, but the broken support at 1.0810 might act as a resistance going forward. It looks like as long as the EUR/USD pair is below the 100 hourly simple moving average at 1.0820, it may continue to move down. On the downside, the next major support is at 1.0760.Tags: EUR/USD Technical Analysis, Euro, German Import Price Index, US Dollar