- The Euro after trading as high as 1.1326 against the US Dollar started a correction phase.
- The EURUSD pair is currently consolidating and forming a contracting triangle pattern on the hourly chart.
- Today in the Euro Zone, the Italian Consumer Price Index was released by the Istat.
- The result was in line with the forecast, as there was a rise of 0.2% in the CPI in August 2016.
EURUSD Technical Analysis
The Euro traded positively recently and touched the 1.1326 level against the US Dollar. The EURUSD pair is currently correcting lower and forming a contracting triangle pattern on the hourly chart, which may provide us the next break.
The pair is currently attempting a close below the 21 hourly simple moving average, which could ignite a downside move.
One may consider trading with a break in EURUSD. Currently, looking at the indicators, the chances of a downside move are more.
Italian Consumer Price Index
Today in the Euro Zone, the Consumer Price Index, which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services was released by Istat. The forecast was slated for a rise of 0.2% in the CPI in August 2016, compared with the previous month.
The result was in line with the forecast. The yearly change came in at -0.1%, just as the market expected. The report added that the “persistence of the negative rates of change of consumer prices on annual basis is the synthesis of price dynamics of opposite sign, which offset almost completely. On the one hand, the annual decrease of prices of Non-regulated energy products reduces its amplitude (-7.0%, from -8.0% in the previous month) and the growth of prices of Unprocessed food accelerates (+ 2.4%, from + 1.5% in July)”.
Overall, the Euro must remain above the triangle support area, as a break may ignite further losses in the near term.