The price has decreased significantly today and is very close to touch two importnat support levels, we’ll see how will react then becasue a breadown will open the door for more declines. The Euro has lost significant ground versus the Yen and versus the US dollar today even if the Euro-zone data have come in mixed. The European currency has decreased a little also versus the Pound.
The EUR/JPY has registered a significant drop even if the Japanese Banks were closed today in observance of the 4-day Bank Holiday.
The German Prelim CPI has increased by 0.7% in December, has come better compared to the 0.1% growth from the previous reading period, but the French Prelim CPI surged only by 0.3%, even if the estimate was 0.5%, however has increased more versus the 0.0% growth in the former reading period.
The Euro wasn’t inspired by the German Unemployment Change, which has dropped from -6K to -17K in November, has reached the lowest level after February 2016 when the indicator was reported at -20K.
The price could be influenced tomorrow by the fundamental factors, the Euro-zone is to release some high impact data.
The price has decreased again after another false breakout above the 123.30 level, now is expected to reach and retest the sliding line (ascending dotted line) and also the 50% retracement level, a drop below these levels will attract more sellers which will drive the price towards the upper median line (UML) of the major descending pitchfork and towards the median line (ml) of the ascending pitchfork, the perspective remains bullish as long as is trading above the median line (ml) of the minor ascending pitchfork, a minor drop is expected after the failure to reach the upper median line (uml) of the ascending pitchfork.
We’ll have a buying opportunity if the sliding line and the 50% retracement level will hold, the upsdie targer remains at the upper median line (uml) of the ascending pitchfork. Tchnically should increase further in the coming weeks after the breakout from the major descending pitchfork.