EUR/USD: The Euro awaits European Monetary Union Industrial Production s.a. (MoM) below its 500 EMA
|What is going on now with EUR/USD?
EUR/USD: The Euro slipped below the price channel and its 500 EMA in the 60 minutes price chart as indicated in this mornings update. The pair currently trades at 1.15869 after it was supported at 1.15885. The Euro is still working its way up towards its 500 EMA and struggles to move forward as indicated in the 60 minutes price chart below.
Our forecast
EUR/USD: The pair needs to break and hold above its 500 EMA at 1.15926 in the 60 minutes price chart to continue to its next long target at 1.16040. The Euro could fall to the head and shoulder price pattern at 1.15758 if it fails to hold above 1.15885.
The European Monetary Union Industrial Production s.a. (MoM) Is going to release its results today at 09:00 GMT-
3 hours time and the result could influence the Euro's future price movements. Usually, if high industrial production growth comes out, this may generate a positive sentiment (or bullish) for the EUR, while low industrial production is seen as a negative sentiment (or bearish).
A positive result could trigger a price surge above 1.6040 and could cover three long price targets at 1.16154, 1.16286, and 1.16390.
A negative result could trigger a sell-off to the neckline of the head and shoulder price pattern at 1.15758, and if it fails to recover, then the head shoulder price pattern effect would kick in and push the prices down covering three short price targets at 1.15650, 1.15584, and 1.5504.
Chart 1: The short-term view of the EUR/USD price action in the 60 minutes price chart highlights the direction of the trend and the support and resistance price points
Chart 2: The short-term view of the EUR/USD price action in the four-hour price chart highlights the direction of the trend and the support and resistance price points
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