- Euro looks like made a short-term top against the US Dollar and may continue to move down.
- There is a descending channel pattern formed on the hourly chart of the EURUSD pair, which is acting as a catalyst for the downside move.
- Italian Wage Inflation released by the National Institute of Statistics posted a rise of 0.1% in Feb 2016, compared with the preceding month.
- In terms of the yearly change, the Italian Wage Inflation rose 0.8%, more than the last rise of 0.7%.
The Euro had a tough time against the US Dollar recently, as after it traded as high as 1.1343. There was a sharp selling interest noted in EURUSD, and now there is a descending channel pattern formed on the hourly chart. It is pushing the pair down and may take it further lower.
The pair is now below the 50 and 100 hourly simple moving average, suggesting bearish signs. A break below the 200 SMA could ignite further losses in the short term.
On the upside, the channel resistance area along with the 50 hourly SMA may continue to act as a hurdle for the bulls.
Italian Wage Inflation
In the Euro Zone today, the Italian Wage Inflation, which is an indicator of labor cost inflation and of the tightness of labor markets was released by the National Institute of Statistics. The outcome was positive, as it posted a rise of 0.1% in Feb 2016, compared with the preceding month.
Moreover, the yearly change of the Italian Wage Inflation came in at +0.8% in Feb 2016, which was more than the last rise of 0.7%. Overall, the report was positive, but had no impact on the Euro and the EURUSD pair.
In short, there is a chance of more losses in the EURUSD pair as long as it is below the 50 hourly SMA.