- Euro looks like forming an interesting breakout structure against the US Dollar.
- There is a contracting triangle pattern formed on the 4-hours chart, which if broken may call for more gains.
- German Producer Price Index released by the Statistisches Bundesamt Deutschland posted a decline of 0.5% in December 2015, more than the forecast of -0.4%.
- In terms of the yearly change, there was a decrease of 2.3% in December 2015, more than the forecast of -2.2%.
The Euro is trading inside a major triangle pattern on the 4-hours chart against the US dollar, which may play a crucial role in the near term. The EURUSD pair is well above the 100, 200 and 50 simple moving averages, which is a positive sign for bulls.
If EURUSD buyers manage to clear the triangle pattern, then there are real chances of it surging higher in the near term.
On the downside, the 100 MA and the triangle pattern holds the key.
Today, the German Producer Price Index, which measures the average changes in prices in the German primary markets was released by the Statistisches Bundesamt Deutschland. The forecast was lined up for a decline of 0.4% in December 2015, compared with the preceding month. However, the outcome was disappointing, as the German Producer Price Index declined by 0.5%.
In terms of the yearly change, German Producer Price Index was forecasted to decrease by 2.2% in Dec 2015, compared with the same month a year ago. However, the result was again disappointing, as the German PPI decreased by 2.3%.
Overall, the Euro came under a lot of bearish pressure after the release. However, it managed to remain inside the highlighted triangle.