The Euro (EUR) inched higher against the US Dollar (USD) on Monday, increasing the price of EURUSD to more than 1.1500 following some key economic releases. The technical bias may turn bearish because of a lower low in the recent downside move.
EUR/USD Technical Analysis
As of this writing, the pair is being traded around 1.1548. Since the price is increasing, a resistance can be noted around 1.1573, an immediate trend line resistance level ahead of 1.1693, the 23.6% Fib level resistance and then 1.1815, the trend line resistance level as demonstrated in the given below chart.
On the downside, a support can be noted around 1.1391, the trendline support level is likely to prevent the price from falling below this level this level. Another support level may come around 1.1350, the psychological number and then comes 1.1300 the key horizontal support level as demonstrated in the given above chart. The technical bias may remain bearish as long as 1.1557, the major horizontal resistance level remains intact.
Europe Industrial Production News
In Europe, the figure concerning the industrial production news remained 1.0 percent in August, as compared to -0.7 percent during the month before, up beating the economists’ expectation which was 0.4%. The data is sourced from a news released by Eurostat, Europe.
The figure shows the productional volume of industries. An upward trend anticipates inflation and therefore the interest rates may rise as well. Generally speaking, a higher production volume indicates a bullish trend for the US Dollar (USD) whereas a lower production rate implies a bearish trend for the US Dollar (USD).
Trade Idea
Considering the overall price behavior of the pair over the last few weeks, selling the EURUSD around current levels can prove to be a good decision in short to medium term.