- The Euro is in a bullish trend against the US Dollar and currently looks set for more gains.
- There are two bullish trend lines formed on the hourly chart of EURUSD, which are acting as a support.
- Today in the Euro Zone, the German Import price index was released by Deutsche Bundesbank.
- The outcome was disappointing, as there was a decline of 0.2% in August 2016, compared with the previous month.
EURUSD Technical Analysis
The Euro started an uptrend after trading as low as 1.1120 versus the US Dollar. The EURUSD pair is trading with a positive tone and following two bullish trend lines formed on the hourly chart, acting as a support.
The 21 hourly simple moving average is also on the downside, providing bids. As long as the pair is above the trend lines, it may continue to post gains.
On the upside, an initial resistance is near 1.1280, followed by the last swing high of 1.1300.
German Import Price Index
Today in the Euro Zone, the German Import price index, which measures the change in prices for goods imported by Germany was released by Deutsche Bundesbank.
The forecast was slated for a minor rise in August 2016, compared with the previous month. However, there was a decline of 0.2% in the German Import price index. Moreover, the Italian Industrial Orders released by the National Institute of Statistics posted a monster decline of 10.8%. The report stated that “July 2016 the seasonally adjusted industrial new orders index decreased by -10.8% compared with June 2016 (+0.8% in domestic market and -22.8% in non-domestic market). The percentage change of the average of the last three months compared to the previous three months was +1.9% (-2.7% in domestic market and +8.4% in non-domestic market)”.
Overall, the releases were bad, the market sentiment remains positive for the Euro in the short term.