The Euro (EUR) inched higher on Monday, increasing the price of EURUSD to more than 1.2350 following the release of some key economic news. The technical bias remains slightly bullish because of a higher high in the recent upside rally.
Technical Analysis
As of this writing, the EURUSD pair is being traded near 1.2368. A support can be seen around 1.2215, an immediate trendline support area ahead of 1.2053, the 50% fib level support and then 1.2000, the pychological level. A break and daily closing below the 1.2000 support area shall trigger renewed selling interest, validating a move towards the 1.1554 level which is the low of the last major downside move.
On the upside, the pair is likely to face a hurdle near 1.2412, the high of yesterday (Tuesday) ahead of 1.2537, a major horizontal resistance area and then 1.2600, the psychological level. The technical bias shall remain bullish as long as the 1.2000 support area is intact.
US Industrial Production
U.S. industrial production surged in February, boosted by strong increases in output at factories and mines, but the economic outlook for the first quarter was dimmed by a larger-than-expected plunge in home building last month.
Industrial production jumped 1.1 percent last month, the Federal Reserve said on Friday. That was the largest increase in four months and followed a 0.3 percent decline in January. February’s increase beat economists’ expectations for only a 0.3 percent gain.
Manufacturing output vaulted 1.2 percent, the biggest gain since October, after falling 0.2 percent in January. Production of primary metals, which include steel and aluminum increased 0.5 percent last month after jumping 1.5 percent in January.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels can be a good strategy as bears are apparently gaining momentum.
Technical Analysis
As of this writing, the EURUSD pair is being traded near 1.2368. A support can be seen around 1.2215, an immediate trendline support area ahead of 1.2053, the 50% fib level support and then 1.2000, the pychological level. A break and daily closing below the 1.2000 support area shall trigger renewed selling interest, validating a move towards the 1.1554 level which is the low of the last major downside move.
On the upside, the pair is likely to face a hurdle near 1.2412, the high of yesterday (Tuesday) ahead of 1.2537, a major horizontal resistance area and then 1.2600, the psychological level. The technical bias shall remain bullish as long as the 1.2000 support area is intact.
US Industrial Production
U.S. industrial production surged in February, boosted by strong increases in output at factories and mines, but the economic outlook for the first quarter was dimmed by a larger-than-expected plunge in home building last month.
Industrial production jumped 1.1 percent last month, the Federal Reserve said on Friday. That was the largest increase in four months and followed a 0.3 percent decline in January. February’s increase beat economists’ expectations for only a 0.3 percent gain.
Manufacturing output vaulted 1.2 percent, the biggest gain since October, after falling 0.2 percent in January. Production of primary metals, which include steel and aluminum increased 0.5 percent last month after jumping 1.5 percent in January.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels can be a good strategy as bears are apparently gaining momentum.
