- – The Euro declined heavily and traded as low as 1.0852 against the US Dollar where it found support.
- – The EUR/USD pair moved higher and broke a crucial bearish trend line at 1.0870 on the hourly chart.
- – Today in the Euro Zone, the German wholesale price Index for April 2017 released by the Statistisches Bundesamt Deutschland posted a rise of 0.3%.
German Wholesale Price Index
In the Euro Zone today, the German wholesale price Index for April 2017 was released by the Statistisches Bundesamt Deutschland. The market was positioned for the Index to post a minor increase of 0.1% in April 2017, compared with the previous month.
However, the result was better than the market forecast, as the wholesale price Index increased by 0.3%, which was also more than the last 0%. Looking at the yearly change, the WPI increased 4.7%, which was similar to the last reading. The report stated that “the selling prices in wholesale trade increased by 4.7% in April 2017 from the corresponding month of the preceding year. In March 2017 and in February 2017 the annual rates of change were +4.7% and +5.0%, respectively”.
Overall, the Euro has no reason to stay down at the moment, which means EUR/USD could spike higher towards the 1.0920 level.
EUR/USD Technical Analysis
The Euro was seen struggling above 1.0940 against the US Dollar, resulting in a sharp decline in EUR/USD. The pair traded lower and moved below 1.0900 for a low at 1.0852 where it found support and started moving higher.
The pair recently broke a crucial bearish trend line at 1.0870 on the hourly chart, which has opened the doors for more gains in the near term. At the moment, the pair is trading near the 23.6% Fib retracement level of the last decline from the 1.0996 high to 1.0852 low.
If the pair manages to settle above the mentioned fib level and 1.0900, it could open the doors for more upsides. The next stop on the upside could be the 50% Fib retracement level of the last decline from the 1.0996 high to 1.0852 low at 1.0924, which is also around the 100 simple moving average. Overall, the pair is likely to move higher as long as above 1.0850.Tags: EUR/USD Technical Analysis, Euro, US Dollar