Euro (EUR) slid down against the US Dollar on Wednesday, decreasing the price of the EURUSD to less than 1.2200, ahead of the release of the European Industrial Production news.
Eurostat plans to release figures for the European Industrial Production news on Wednesday (January 13, 2021). According to economists, the European Industrial Production news registered a reading of 0.2% in November, as compared to 2.1% in the month before.
The European Industrial Production news reflects the volume of production in industries and manufacturing units across the country. If the production level remains higher, it indicates an inflationary outlook of the country’s economy with higher interest rates. Generally speaking, higher reading is positive for the Euro (EURO) hence suggests a bullish market for the EURUSD pair ahead and vice versa.
As of this writing, the EURUSD pair floats around 1.2156. Should the price continues to drop, the pair might find some sustainability near the listed price tags.
At first, there is the Fibonacci level at 1.2050 immediately after the price, and then there is the horizontal support at 1.1977.
Moreover, there is news from the United States which comes in a few days, that might proceed the pair forward direction.
The U.S. Census Bureau is scheduled to release numbers amid U.S. Retail Sales news on Friday (January 15, 2021). According to economists’ consensus, the U.S. Retail Sales data registered a reading of 0% in December, as compared to the reading of -1.1% in the month before.
The technical bias might remain bullish because of the higher high wave printed in the last upside price movement of the pair.