Key Points
- The Euro after trading as high as 1.0627 against the US Dollar found sellers and currently moving down.
- There is a descending channel pattern formed on the hourly chart of EURUSD, acting as a resistance near 1.0570.
- Today, the Spanish Industrial Output report was released by the National Institute of Statistics.
- The result was better, as there was a rise of 3.2% in Nov 2016, compared with the forecast of +1%.
EURUSD Technical Analysis
The Euro made a nice upside move towards 1.0630 where it found sellers against the US Dollar, and later started moving down. The EURUSD pair is currently trading lower, and following a descending channel pattern formed on the hourly chart with resistance near 1.0570.
The pair is also below the 21 hourly simple moving average, which is also acting as a resistance near 1.0570. Overall, the pair is facing a tough barrier near the stated level, and may move down.
The hourly RSI is also below the 50 level, but attempting to move higher. If the EURUSD pair can break 1.0570, it can move back towards 1.0600.
Spanish Industrial Output
Today during the London session, the Spanish Industrial Output, which shows the volume of production of Spanish industries such as factories and manufacturing was released by the National Institute of Statistics.
The result was better than the expectation of +1% in Nov 2016, compared with the same month a year ago. The actual was +3.2% in Nov 2016. The report added that “Durable consumer goods (4.1%), Equipment goods (2.5%) and Intermediate goods (2.3%) were the sectors with the highest positive monthly rates. Conversely, Energy (-0.4%), is the only sector with negative monthly rate”.
Overall, it looks like the EURUSD pair may continue to struggle near 1.0570, and could trade back towards the 1.0540 support area.
