The Euro after a downside move towards 1.0520 against the US Dollar started correcting higher.
The EURUSD pair broke a bearish trend line (4-hours chart) on the way up and traded as high as 1.0675.
Today in the Euro Zone, the German Producer Price Index will be released for Jan 2017 by the Statistisches Bundesamt Deutschland, and the forecast is lined up for +0.2% (MoM).
In New Zealand today, the Producer Price Index Input released by the Statistics New Zealand posted a rise of 1% in Q4 2016 (QoQ).
EURUSD Technical Analysis
The Euro was seen struggling against the US Dollar until it found support near 1.0520. The EURUSD pair corrected higher towards 1.0675, and now it looks like the correction is likely over.The EURUSD pair during the upside move broke a bearish trend line at 1.0600 on the 4-hours chart. It also moved above the 23.6% Fib retracement level of the last decline from the 1.0828 high to 1.0521 low.However, it looks like the pair has completed a correction wave. It faced sellers near the 50% Fib retracement level of the last decline from the 1.0828 high to 1.0521 low. It has already started moving down, and broke the 100 simple moving average (H4). So, there is a chance that the pair may continue lower and retest the 1.0580 support area.
New Zealand PPI
Today in New Zealand, the Producer Price Index, which is a measurement of the rate of inflation experienced by producers was released by the Statistics New Zealand. The market was expecting the PPI to increase by around 1.2% in Q4 2016, compared with the previous quarter.However, the result was a bit disappointing, as the PPI rose 1% in Q4 2016. Furthermore, the report added that “Producer output prices were mainly influenced by higher prices received by dairy product manufacturers (up 14 percent), and higher farm-gate milk prices received by dairy cattle farmers (up 13 percent)”.Overall, the result was not able to spike any volatility in the Kiwi dollar, as the NZDUSD pair remained stable.
Economic Releases to Watch Today
German PPI for Jan 2017 – Forecast +1.9% (YoY) versus +1% previous.
Canadian Wholesales Dec 2016 - Forecast +0.1% (MoM) versus +0.2% previous.
The EURUSD pair during the upside move broke a bearish trend line at 1.0600 on the 4-hours chart. It also moved above the 23.6% Fib retracement level of the last decline from the 1.0828 high to 1.0521 low.However, it looks like the pair has completed a correction wave. It faced sellers near the 50% Fib retracement level of the last decline from the 1.0828 high to 1.0521 low. It has already started moving down, and broke the 100 simple moving average (H4). So, there is a chance that the pair may continue lower and retest the 1.0580 support area.