- Euro moved lower during the past couple of sessions against the US dollar, and traded below 1.0800.
- The EURUSD pair cleared the 200 simple moving average on the 4-hours chart, which is a bearish sign.
- Euro Zone CPI released by the Eurostat registered a rise of 0.2% in December 2015, compared with the same month a year ago whereas the forecast was of 0.3%.
- Euro Zone Core Consumer Price Index also came below the forecast and increased by 0.8%.
The EURUSD pair fell sharply today and traded below the 200 simple moving average on the 4-hours chart. The worst part was the fact that the 1.0800 support area was cleared by sellers, pointing towards more losses in the near term.
There was a support trend line on the 4-hours chart, which was broke to clear the way for a decline. The pair is currently heading towards the 61.8% Fib retracement level of the last wave from the 1.0539 low to 1.1062 high where buyers may appear.
On the upside, the broken 200 SMA (H4) may act as a hurdle for a correction.
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 released by Eurostat. The market was expecting an increase of 0.3% in December 2015, compared with the same month a year ago. However, the outcome missed the mark, as the CPI rose only 0.2%.
Similarly, the Core CPI was disappointing, as the forecast was of a 0.9% rise but the actual was 0.8% in December 2015, compared with the same month a year ago.
The EURUSD pair traded lower after the release and it looks like it may continue to trade lower in the short term.