- Euro traded higher recently vs the US dollar and it looks like there is more room left towards the upside.
- There is a bullish trend line formed on the hourly chart of the EURUSD pair, which is acting as a support area for the buyers.
- German Producer Price Index released by the Statistisches Bundesamt Deutschland posted no change in March 2016, compared with the previous month.
- In terms of the yearly change, there was a decline of 3.1% in the German PPI.
The Euro managed to gain strength against the US Dollar recently, and it looks like the EURUSD pair may trade further higher. There is a bullish trend line formed on the hourly chart, which can be considered as a buy zone in the short term.
As long as the pair is above the trend line and support area there is a chance of more gains in the Euro moving ahead.
On the upside, a break of the 1.1385-90 area could take the EURUSD pair above the 1.1420 level.
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 an increase of 0.2% in March 2016, compared with the previous month. However, the outcome was disappointing, as there was no change in the PPI.
Moreover, in terms of the yearly change, the German PPI declined 3.1% whereas the forecast was -2.9%. The report stated “In March 2016 energy prices decreased by 9.2% compared with March 2015, prices of intermediate goods by 2.3% and prices of non-durable consumer goods by 0.3%. In contrast prices of capital goods rose by 0.6% and prices of durable consumer goods by 1.4%”.
Overall, the report was not positive, but the Euro may not be impacted and could trade higher.