- – The Euro surged higher yesterday and broke the 1.1380 resistance against the US Dollar.
- – There was a break above a bearish trend line at 1.1345 on the hourly chart of EUR/USD, which has opened the doors for more gains.
- – Today in the Euro Zone, the Industrial Production for May 2017 released by the Statistisches Bundesamt Deutschland posted an increase of 1.2% (MoM).
German Manufacturing PMI
Recently in the Euro Zone, the German Industrial Production for May 2017 was released by the Statistisches Bundesamt Deutschland. The market was positioned for an increase of 0.3% in the production compared with the previous month.
However, the actual result was better, as the German Industrial Production posted an increase of 1.2%, but the last reading was revised down from 0.8% to 0.7%. In terms of the yearly change, there was a rise of 5%, more than the forecast of 4%. The report added that:
In May 2017, production in industry excluding energy and construction was up by 1.3%. Within industry, the production of capital goods increased by 2.6% and the production of consumer goods by 1.4%.
Overall, the EUR/USD pair is likely to continue higher and could even challenge the 1.1450 level in the near term.
EUR/USD Technical Analysis
The Euro formed a decent base near 1.1310-20 against the US Dollar and started an upside move. The EUR/USD pair marched higher and broke many hurdles like 1.1340, 1.1380 and the 100 simple moving average.
The pair even managed to move above the 61.8% Fib retracement level of the last decline from the 1.1448 high to 1.1310 low. Moreover, there was a break above a bearish trend line at 1.1345 on the hourly chart of EUR/USD.
This is a clear signal that the pair may continue to trade higher towards the last high of 1.1448 in the short term. Above the 1.1448 high, the pair may attempt a move towards the 1.123 extension of the last decline from the 1.1448 high to 1.1310 low.
On the downside, the 100 simple moving average at 1.1370 may be considered as a support and buy zone if the pair corrects lower from the current levels.Tags: EUR/USD, EUR/USD Technical Analysis, Euro, US Dollar