- – The Euro after trading towards 1.0600 against the US Dollar found support and moved higher.
- – There is a crucial contracting triangle pattern formed on the 4-hours chart of EUR/USD, which acted as a support near 1.0600, and has resistance near 1.0740.
- – Earlier today, the German Producer Price Index released by the Statistisches Bundesamt Deutschland posted a rise of 0.4% in Dec 2016, same as the forecast of +0.4%.
German Producer Price Index and Chinese GDP
Today, the German Producer Price Index report was published by the Statistisches Bundesamt Deutschland. The expectation was a 0.4% rise in the index in Dec 2016, compared with the previous month.
The result was as forecasted, and even the yearly change was in line with the market expectation of a 1% rise in Dec 2016, compared with Dec 2015. Earlier today, the Chinese Gross Domestic Product (GDP) report was published by the National Bureau of Statistics of China.
The market was aligned for an increase of 6.7% in the GDP in Q4 2016, but it posted 6.8%. So, the market sentiment improved post the result, which means there is a chance of the EUR/USD pair gaining bids in the near term.
EUR/USD Technical Analysis
The Euro is an uptrend against the US dollar, and the 4-hours chart of EUR/USD clearly highlights the same, as the pair is above the 1.0600 support area. There was a dip recently from the 1.0715 high, but the stated support acted as a barrier and prevented a downside move near 1.0600.
The EUR/USD pair is currently moving higher, and already broke the 50% Fib retracement level of the last decline from the 1.0718 high to 1.0588 low. So, there is a chance of the pair trading close to the full high of 1.0718 or 1.0700.
There is a crucial contracting triangle pattern formed on the 4-hours chart with support near 1.0600 and resistance near 1.0740. It would be interesting to see whether the pair keeps rising and tests the highlighted triangle resistance near 1.0740.
The same triangle resistance also coincides with the 1.236 extension of the last decline from the 1.0718 high to 1.0588 low. So, it may act as a critical resistance area.Tags: Chinese GDP, Dollar, EUR/USD Technical Analysis, Euro, US Dollar