EUR Could Trade Higher versus YEN Ahead of Euro Zone CPI
Aayush Jindal
Key Highlights
Euro traded higher against the Japanese Yen, but it looks like it if finding resistance around 138.80.
Euro Zone Consumer Price Index will be released by Eurostat today, which is expected to post a decline of 0.6% in July 2015.
In New Zealand, the Retail Sales report released by the Statistics New Zealand registered an increase of 0.1% in the second quarter, compared with the preceding quarter.
EURJPY Technical AnalysisThe Euro traded higher recently and made one more attempt to clear the 138.80 resistance area against the Japanese Yen. However, the EURJPY pair failed once again, and this makes it more than 3 attempts to clear the stated resistance area. There was a bullish trend line formed which was broken earlier, and now acting as a resistance for the pair.Overall, there is a monster resistance formed around 138.80, which poses a risk for a break lower in the near term. The pair needs to settle above 139.00 if it has to trade higher moving ahead. On the downside, an initial support can be seen around 50% fib level of the wave from the 138.07 low.Euro Zone CPIToday, the Euro Zone Consumer Price index, which captures the changes in the price of goods and services will be released by Eurostat. The forecast is lined up for a 0.6% decline in July 2015, compared with the preceding month. In terms of the yearly change, it is expected to increase by 0.2%. Any disappointment might cause a downside reaction in the near term in the Euro.New Zealand Retail SalesEarlier during the Asian session, the New Zealand Retail Sales report, which measures the total receipts of retail stores was released by the Statistics New Zealand. The forecast was positioned for an increase of 0.5% in sales the second quarter of 2015, compared with the preceding quarter. However, the outcome was on the lower side, as the New Zealand Retail Sales posted a rise of only 0.1%.Moreover, the New Zealand Core Retail Sales posted a rise of 0.1%, which was a lot lower when compared with the last rise of 2.9%. The Kiwi Dollar lost ground after the release, and was seen trading lower against the US Dollar.
Overall, there is a monster resistance formed around 138.80, which poses a risk for a break lower in the near term. The pair needs to settle above 139.00 if it has to trade higher moving ahead. On the downside, an initial support can be seen around 50% fib level of the wave from the 138.07 low.Euro Zone CPIToday, the Euro Zone Consumer Price index, which captures the changes in the price of goods and services will be released by Eurostat. The forecast is lined up for a 0.6% decline in July 2015, compared with the preceding month. In terms of the yearly change, it is expected to increase by 0.2%. Any disappointment might cause a downside reaction in the near term in the Euro.New Zealand Retail SalesEarlier during the Asian session, the New Zealand Retail Sales report, which measures the total receipts of retail stores was released by the Statistics New Zealand. The forecast was positioned for an increase of 0.5% in sales the second quarter of 2015, compared with the preceding quarter. However, the outcome was on the lower side, as the New Zealand Retail Sales posted a rise of only 0.1%.Moreover, the New Zealand Core Retail Sales posted a rise of 0.1%, which was a lot lower when compared with the last rise of 2.9%. The Kiwi Dollar lost ground after the release, and was seen trading lower against the US Dollar.
Overall, there is a monster resistance formed around 138.80, which poses a risk for a break lower in the near term. The pair needs to settle above 139.00 if it has to trade higher moving ahead. On the downside, an initial support can be seen around 50% fib level of the wave from the 138.07 low.Euro Zone CPIToday, the Euro Zone Consumer Price index, which captures the changes in the price of goods and services will be released by Eurostat. The forecast is lined up for a 0.6% decline in July 2015, compared with the preceding month. In terms of the yearly change, it is expected to increase by 0.2%. Any disappointment might cause a downside reaction in the near term in the Euro.New Zealand Retail SalesEarlier during the Asian session, the New Zealand Retail Sales report, which measures the total receipts of retail stores was released by the Statistics New Zealand. The forecast was positioned for an increase of 0.5% in sales the second quarter of 2015, compared with the preceding quarter. However, the outcome was on the lower side, as the New Zealand Retail Sales posted a rise of only 0.1%.Moreover, the New Zealand Core Retail Sales posted a rise of 0.1%, which was a lot lower when compared with the last rise of 2.9%. The Kiwi Dollar lost ground after the release, and was seen trading lower against the US Dollar.