- Euro moved lower against the US Dollar, and it looks like the EURUSD pair is under a lot of bearish pressure.
- There is a monster triangle formed on the 4-hours chart of the EURUSD pair, which is acting as a barrier for more gains.
- Today, the Euro Zone CPI released by the Eurostat posted an increase of 0.1% in November 2015, whereas the market was expecting 0.2%.
- The Core Consumer Price Index was also on the lower side and increased by 0.9%, compared with the forecast of 1%.
The EURUSD pair after trading close to the 1.0550 level managed to recover some ground and traded higher. There is a contracting triangle pattern formed on the 4-hours chart, which is acting as a resistance for the pair.
After disappointing Euro Zone CPI release, the pair started to move lower, and it looks like the pair might continue to weaken.
There is even a chance of the EURUSD pair testing the last swing low of 1.0550.
Euro Zone CPI
Today, there was a major release in the Euro Zone, as 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 reported by Eurostat. The forecast was slated for an increase of 0.2% in the CPI in November 2015. However, the outcome was disappointing, as the CPI rose 0.1%, compared with the same month a year ago.
The report stated that the “main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in November (1.5%, compared with 1.6% in October), followed by services (1.1%, compared with 1.3% in October), non-energy industrial goods (0.5%, compared with 0.6% in October) and energy (-7.3%, compared with -8.5% in October)”.
Overall, the Euro Zone CPI failed to help the shared currency and may take the EURUSD pair further lower.