The Euro (EUR) rallies downside against the US Dollar (USD) after the stats with respect to the industrial production index were released by the Statistisches Bundesamt Deutschland. A figure of 0.4% was recorded the month before, it remained -0.6% this month, up beating the figure which was expected by the economists i-e -0.4%.
The “Statistisches Bundesamt Deutschland ” has recently released figures concerning the industrial production index. It demonstrates the volume of creation of Industries, for example, production lines and assembling. Up pattern is viewed as inflationary which may envision loan costs to rise. As a rule, if high modern creation development turns out, this may create a positive assumption (or bullish) for the EUR, while low mechanical generation is viewed as a negative estimation (or bearish).
Currently, the pair is being traded around 1.1016, just falling below three immediate resistance levels including the major horizontal and trendline resistance. It seems that the pair will struggle to break through the resistance levels and rise up.
The Trade Balance news also suggests a favorable economic condition for the pair with a reading of €19.2 B, this month as compared to € 18.7 B, the previous month. The reading remained higher than the consensus of the market leaders which was € 18.1 B.
The Trade Balance is a balance between exports and imports of total products and services. A positive value shows a trade surplus, while a negative value indicates a trade deficit. It is an event that creates certain volatility for the EUR. If a steady demand is seen in exchange for German exports, the trade balance would grow positively.
Trading EURUSD for a short term position can be profitable but opening a long term position might not work.