Due to release of negative data in the US on the PPI the currency exchange rate made suddenly dropped down to the monthly PP, which is located at the 1.1881 level. In result of this action, the pair broke through the lower trend-line of a three month long senior ascending channel. At the moment, the only barrier that it faces from the south is the bottom edge of another more recently formed ascending channel. In this sense, the buck might drag the pair even lower. On the other hand, the pair is likely is stuck near the above monthly PP for some time, while traders are anticipating a release of data on the US CPI at 12:30 GMT. Accordingly, the positive result will strengthen the downside momentum even more, while the negative will give the Euro a necessary impulse to recover from yesterday’s loss.
