Key Points
- The Euro recently traded as high as 1.0799 against the US Dollar before starting a correction.
- There is a bearish trend line formed on the hourly chart of EURUSD, which may act as a resistance on the upside near 1.0760.
- Today in the Euro Zone, the German Industrial Production was released by the Statistisches Bundesamt Deutschland.
- The result was on the lower side, as there was a rise of 0.3% in Oct 2016, which was less than the forecast of 0.8%.
EURUSD Technical Analysis
The Euro remained in an uptrend as it traded higher above the 1.0780 resistance against the US Dollar. The EURUSD pair traded as high as 1.0799 before it started a correction. The pair already tested the 23.6% fib retracement level of the last wave from the 1.0504 low to 1.0799 high.
The pair is currently finding bids near the 21 hourly simple moving average, and may move higher. However, there a bearish trend line formed on the hourly chart, which may act as a resistance on the upside near 1.0760.
So, one may consider selling rallies in the short term and minor risk around the trend line with a stop above 1.0800.
German Industrial Production
Today in the Euro Zone, the Industrial Production, which measures outputs of the German factories and mines was released by the Statistisches Bundesamt Deutschland.
The market was expecting a rise of 0.8% in Oct 2016, compared with the previous month. However, the result was a bit lower, as there was a rise of 0.3%. The report stated that in “October 2016, production in industry was up by 0.3% from the previous month on a price, seasonally and working day adjusted basis according to provisional data of the Federal Statistical Office (Destatis). In September 2016, the corrected figure shows a decrease of 1.6% (primary –1.8%) from August 2016”.
Overall, the EURUSD pair is likely to correct lower and test the 1.0680 support area in the short term.
