The Euro (EUR) rallies downside against the US Dollar (USD) after the stats with respect to the industrial production index were released by the Eurostat. A figure of 0.8% was recorded the month before, it remained -1.6% this month, down beating the figure which was expected by the economists i-e -1.4%.
The “Eurostat” 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 1.1172, just falling below two 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 Market PMI composite news also suggests a favorable economic condition for the pair with a reading of 53.6, this month as compared to 52.8, the previous month. The reading remained higher than the consensus of the market leaders which was 52.7.
The Market Economics release monthly PMI composite stats on the manufacturing and service sectors after taking into account the contribution made by each sector towards the total manufacturing output of the country. A reading above than 50 is supposed to have a positive impact and vice versa.
Trading EURUSD for a short term position can be profitable but opening a long term position might not work.