- The Euro traded as low as 1.1026 against the US dollar recently, and started moving higher.
- There is a major resistance seen at 1.1070-80 on the hourly chart of EURUSD, which may act as a barrier for the buyers.
- Today in the Euro Zone, the German Industrial Production was released by the Statistisches Bundesamt Deutschland.
- The result was on the lower side, as the Industrial Production declined by 1.6% in Sep 2016, compared with the previous month.
EURUSD Technical Analysis
The Euro moved from the 1.1143 high to 1.1026 low against the US Dollar, and then the EURUSD pair started correcting higher. There was a move above the 23.6% Fib retracement level of the last drop from the 1.1143 high to 1.1026 low.
However, the EURUSD pair is facing a major resistance on the way up around the 21 hourly simple moving average, coinciding with the last swing area at 1.1070-80.
So, it won’t be easy for the pair to break it. The current momentum looks good, so let’s see if the Euro buyers can make it or not.
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 decline of 0.5% in Sep 2016, compared with the previous month. However, the result was on the lower side, as there was a decline of 1.6%. The report added that “In September 2016, production in industry excluding energy and construction was down by 1.7%. Within industry, the production of capital goods decreased by 2.4% and the production of consumer goods by 1.9%.The production of intermediate goods showed a decrease by 0.5%. Energy production was down by 3.1% in September 2016 and the production in construction decreased by 1.5%”.
Overall, it looks like it won’t be easy for the EURUSD pair to break 1.1070-80, but if it does, then a move towards 1.1120 is possible.