- The Euro managed to climb higher versus the US Dollar and currently looks poised for more gains.
- There was a break above a major resistance area of 1.1200, which may now serve as a support area.
- Today, the German Industrial Production was released by the Statistisches Bundesamt Deutschland.
- The forecast was lined up for an increase of 0.4% in July 2016, but it declined by 1.5%.
EURUSD Technical Analysis
The Euro surged higher during the past few sessions against the US Dollar and currently consolidating in a range. There is a chance of a minor dip from the current levels, but the EURUSD pair may find support on the downside.
The most important support on the downside is at 1.1200. It was a resistance earlier and may now act as a support, as it is also around the 50% Fib retracement level of the last wave from the 1.1141 low to 1.1266 high.
On the upside, a break above the 1.1266 level may push the pair towards 1.1300.
German Industrial Production
Today during the London session, the German Industrial Production, which measures outputs of the German factories and mines was released by the Statistisches Bundesamt Deutschland.
The forecast was lined up for an increase of 0.2% in July 2016, compared with the previous month. However, the outcome was on the lower side, as there was a decline of 1.5%. The report added that “In July 2016, production in industry excluding energy and construction was down by 2.3%. Within industry, the production of capital goods decreased by 3.6% and the production of consumer goods by 2.6%.The production of intermediate goods decreased by 0.8%. Energy production was up by 2.6% in July 2016 and the production in construction increased by 1.8%”.
Overall, there is a chance of a minor decline in the EURUSD pair, but it may remain bid on the downside.