- Euro after trading close to 1.0946 found buyers and currently correcting higher.
- EURUSD pair broke a short-term resistance trend line to clear the way for more gains.
- Italian Consumer Price Index released by the Istat posted an increase of 0.1% in November 2015, just as the market expected.
- In terms of the monthly change, there was a decline of -0.4%, similar to the previous reading.
The EURUSD pair recently cleared a major bearish trend line on the hourly chart, which was a part of a triangle structure. The highlighted break can be considered as crucial, as the pair spiked after the break. Moreover, the pair also cleared the 23.6% Fib retracement level of the last drop from the 1.1033 high to 1.0946 low.
On the downside, the broken trend line may act as a support moving ahead. Any further losses could find bids near the 100 hourly MA.
On the upside, the next area of interest could be around the 61.8% Fib level.
Today, the Italian 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 the Istat. The forecast was slated for a decline of -0.4% in November 2015, compared with the preceding month. The outcome was as forecasted, which helped the Euro to gain some ground.
When we look at the yearly change, then the Italian CPI rose 0.1% in November 2015, which was again in line with the forecast. Overall, the economic front was positive, which lifted the market sentiment in favor of the Euro bulls.
The recent break in the EURUSD pair can be seen as a buying opportunity that may take the pair higher in the near term.