Currently, with a price of less than 1,0880, the EUR dropped once again against the US dollar, it increased yesterday after the continuous loss of the last week, which brought the brightness in the darkroom of the EURUSD, but today’s result takes the EURUSD back into the bad state of failure. If we talk about the loss of today’s particularly, then it might be because of the Industrial Production downturn.
This decline may have resulted amid the negative growth of Germany Industrial Output. The Industrial Output published by the Statistisches Bundesamt Deutschland dropped significantly from 3.2% reading to 0.3%, which is also below the economist’s estimate of 0.9%.
Industrial Production tests the German factories and mines efficiency. Changes in industrial production are commonly tracked in the manufacturing sector as an effective strength indicator. A high reading is considered positive (or bullish) for the EUR whereas a low reading is considered negative (or bearish).
Unfortunately, on the downside, only minimal assistance was provided as the level of support highlighting the likelihood of a price rise. First, there is the support around 1.0837, the Fib level then there is the trendline at 1.0797, and then there is the key level of horizontal support at 1.0635.
On the upper side, the price may be pressured by the number of resistance levels that add another barrier in the already burdened EURUSD journey because it does not allow it to continue its progress.
Even though the EURUSD conditions are not good, and at this stage it includes uncertainty, as we have seen its bearish run right now, but the pair has the potential to face the market’s upcoming challenges, so investing in the EURUSD is not a bad idea for the long-standing place holders.