The Euro (Eur) falls against the US Dollar (USD) on Monday, lowering the price to less than 1,1100. According to an adverse economic release, the price decreased. Thus, as long as the technical bias is concerned, it may remain bearish because during the recent upside move a higher low can be seen on the chart.
As we speak of the unemployment rate published by the Bundesagentur für Arbeit, it shows the same 5% rate as the previous month, using seasonally adjusted data, it shows the percentage of unemployed people in Germany.
Similarly, in this quarter, the Gross Domestic Product released by the Statistisches Bundesamt Deutschland in Germany remains at 0.5%, equivalent to the percentage of the previous month as GDP is considered to be an expansive proportion of German economic action and well-being.
The EURUSD is currently being traded at around 1,1019, with many levels of resistance ahead. The first level of resistance may find the price around 1.1034, the key horizontal resistance ahead of 1.1058, the resistance of the trend line. Both of these levels may further limit the price from increasing as shown in the following chart.
On the other hand, HICP is an index of consumer prices measured and published by Destatis, the European Union’s Statistical Office, which grew from 0.9% to 1.2%, also meet the economist’s expectations. This is the theoretical methodology harmonized across all Member States of the EU.
Also, Eurostat’s core consumer price index rises from 1.1 percent to 1.3 percent as it crosses the expectations of economists. By calculating price movements by comparing the retail prices of a typical commodity and service basket with unpredictable components such as food, fuel, alcohol, and tobacco. it is a key indicator for measuring inflation and changes in trends in purchasing are the core CPI.
Considering the overall price activity of the pair over the past few days, selling EURUSD at current levels may not be a smart decision for the short to medium term.