- Euro after trading down towards the 0.7830 found support against the British Pound, and currently attempting to break higher.
- There is a critical bearish trend line formed on the hourly chart of the EURGBP pair, which is acting as a resistance area.
- Germany consumer price index released by the Statistiches Bundesamt Deutschland posted a rise of 0.3% in March 2016, more than the forecast of 0.2%.
- In terms of the monthly change, the German CPI increased 0.8%.
The Euro looks like eyeing a break against the British Pound, as the EURGBP pair is currently testing a major resistance area. There is a critical bearish trend line formed on the hourly chart, which is preventing gains and acting as a resistance for the Euro bulls.
The 100 and 200 hourly simple moving averages are also positioned above the trend line resistance. So, in short, there is a crucial resistance near 0.7860-70.
A break above the resistance are may clear the way for more upsides moving ahead.
Earlier today, the Germany consumer price index, which measures the average price change for all goods and services purchased by households for consumption purposes was released by the Statistiches Bundesamt Deutschland. The market was expecting an increase of 0.2% in the CPI in March 2016, compared with March 2015. However, the outcome was positive, as the CPI increased 0.3%.
Moreover, the report added that the “harmonised index of consumer prices for Germany, which is calculated for European purposes, is expected to be up 0.1% in March 2016 year on year. Compared with February 2016, it is expected to rise by 0.8%”.
Overall, the EURGBP needs to clear the highlighted trend line and resistance area if it has to gain traction moving ahead.