Key Points
- The Euro after trading as high as 1.1446 against the US Dollar started a consolidation phase.
- There is a crucial bearish trend line with resistance at 1.1414 forming on the hourly chart of EURUSD.
- Today in the Euro Zone, the Italian Industrial Output for May 2017 was released by the National Institute of Statistics.
- The outcome was above the forecast, as there was an increase of 0.7%, more than the forecast of 0.5% (MoM).
EURUSD Technical Analysis
The Euro started a nice uptrend and traded above the 1.1440 level against the US Dollar. The EURUSD pair traded as high as 1.1446 and later started a consolidation phase to move back below the 21 hourly simple moving average.
The pair is finding support above the 1.1380 and trading in a range with resistance near a crucial bearish trend line with resistance at 1.1414 on the hourly chart.
The 50% Fib retracement level of the last decline from the 1.1446 high to 1.1383 low is also around the trend line resistance. So, as long as the pair is below 1.1415-20, there is a chance of more declines in the near term.
Italian Industrial Output
Today in the Euro Zone, the Italian Industrial Output for May 2017 was released by the National Institute of Statistics. The market was positioned for the Italian Industrial Output to increase by 0.5%, compared with the previous month.
The actual result was above the forecast, as there was an increase of 0.7%, more than the forecast of 0.5%. In terms of the yearly change, there was an increase of 2.8%, which was more than the forecast of 2.2%. The report added that:
The percentage change of the average of the last three months with respect to the previous three months was +0.2.
Overall, the EURUSD pair may spike higher, but most likely to face sellers near 1.1415 and the trend line resistance.
