- Euro traded down against the Swiss Franc and it looks like trading at a critical juncture.
- German Producer Price Index released by the Statistisches Bundesamt Deutschland came in at -0.7% in Jan 2016, and missed the expectation of -0.3%.
- The yearly change posted a decrease of 2.4%, more than the forecast of -2%.
- EURCHF was down and out, as it broke a major support trend line on the hourly chart.
The EURCHF after following a bearish path on the hourly chart broke down, and cleared a major support trend line. The pair even traded below the 100 and 50 simple moving average to give sellers a reason to take the pair down.
The pair may be heading towards the 1.618 extension of the last leg from the 1.1020 low to 1.1049 high where the 200 hourly simple moving average is positioned to act as a support for the pair.
On the upside, the broken trend line along with the 100 MA may act as a barrier for buyers in the near term.
Today in the Euro Zone, the Producer Price Index, which measures the average changes in prices in the German primary markets was released by the Statistisches Bundesamt Deutschland. The forecast was slated for a decline of 0.3% in Jan 2016, but it declined more and came in at -0.7%.
The report stated that “In January 2016 energy prices decreased by 7.3% compared with January 2015, prices of intermediate goods by 2.2%. In contrast prices of non-durable consumer goods rose by 0.6%, prices of capital goods by 0.6% and prices of durable consumer goods by 1.4% “.
Overall, there was nothing to cheer for the Euro buyers, and as a result the EURUSD and EURCHF pair remain at a risk of more losses.