FXOpen
The Euro (EUR) inched lower against the US Dollar (USD) on Monday, decreasing the price of EUR/USD to less than 1.1000 ahead of the Germany’s industrial production report which is considered a key gauge for economic activity. The technical bias remains bullish because of a higher high in the recent upside wave.
Technical Analysis
As of this writing, the pair is being traded around 1.0983. A hurdle may be noted near 1.1000, the psychological number ahead of 1.1021, the high of the last major upside rally and then 1.1094, a key horizontal resistance area on higher timeframes. A break and four-hour closing above the 1.1094 resistance shall incite renewed buying interest, validating a move towards the 1.1260 resistance zone which is another major resistance level.
On the downside, a support may be seen near 1.0922, an immediate trendline support as demonstrated with red color in the given above chart along with the 23.6% fib level. A break and hourly closing below the 1.0922 support shall incite renewed selling pressure, validating a move towards the 1.0805 which is the 50% fib level. The technical bias shall remain bullish as long as the 1.0805 support zone is intact.
How EUR/USD Reacted on Past Industrial Production Releases?
The EUR/USD rose by 35 pips after the release of last industrial production report from Germany on 7th April, 2017 as the actual outcome was 2.2% as compared to the forecast of -0.2%.
The pair, however, didn’t show any noticeable volatility after the release of March’s industrial production news as the actual outcome was 2.8% as compared to the same forecast.
Trade Idea
Selling the pair around current levels may be a good strategy if the industrial production report misses the average forecast and vice versa.
What Assets to Trade?
In addition to EUR/USD, trading EURGBP, EURCAD and EURAUD may also be a good move as the aforementioned pairs are highly reactive to the Germany’s industrial production news.
Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Latest from Forex Analysis
Latest articles
Market Analysis: American Currency Rises Sharply after Fed Meeting
As expected, the decision on the interest rate had a powerful impact on the markets. Thus, the euro/US dollar pair lost more than 100 pp in just a couple of hours and updated its recent low at 1.0630,
Oil Analysis: Finally, A Bearish Reversal?
The policy of OPEC+ countries to voluntarily reduce oil production was one of the drivers thanks to which the price of WTI oil increased by approximately 40% from its low in June. In such cases, it is appropriate to use
Central Bank Week Shakes Up Gold Market
Yesterday, the main event of the week took place — the Federal Reserve meeting, which had a noticeable impact on the market of assets denominated in US dollars. But besides the Fed meeting, there are a number of other events this