- Euro after trading lower towards the 0.7920 level against the British Pound started to move higher.
- There was a bullish trend line formed on the hourly chart of the EURGBP pair, which was cleared to pave the way for an upside move.
- Euro Zone CPI released by the Eurostat posted no change for March 2016, whereas the market was expecting a decline of 0.1%.
- In terms of the monthly change, the Euro Zone CPI rose 1.2% in March 2016.
The Euro after weakening against the British Pound started to find bids once again around the 0.7920 levels. There was a bullish trend line formed on the hourly chart of the EURGBP pair, which was broken recently.
However, the pair is currently finding sellers near the 50 hourly simple moving average and the 50% Fib retracement level of the last drop from the 0.8028 high to 0.7925 low. So, a minor move down is possible.
One may consider buying dips near the broken trend line, which may now act as a support area.
Euro Zone CPI
Earlier today, the Euro Zone CPI, which captures the changes in the price of goods and services was released by the Eurostat. The forecast was lined up for a decrease of 0.1% in March 2016. However, the result was better, as there was no change in the CPI.
In terms of the monthly change, the Euro Zone CPI gained 1.2%, which was in line with the market forecast. The report added that “largest upward impacts to euro area annual inflation came from restaurants & cafés (+0.12 percentage points), package holidays (+0.09 pp) and rents (+0.07pp), while fuels for transport (-0.60pp), heating oil (-0.23pp) and gas (-0.10 pp) had the biggest downward impacts“.
Overall, the report was encouraging, but the Euro may trade higher since the result matched the forecast.