Key Highlights
Euro surged higher this past week against the US Dollar, and settled above a key resistance area of 1.0800.
EURUSD is currently correcting lower, which looks like a consolidation pattern before the next move.
German Industrial Production will be released by the Statistisches Bundesamt Deutschland today, which is forecasted to register an increase of 0.7% in October 2015.
In Australian, the HIA/AiG Performance of Construction Index released by the Australian Industry Group and the Housing Industry Association posted a decline from 52.1 to 50.7 in November 2015.
EURUSD Technical Analysis
The EURUSD pair spiked higher this past week to trade near 1.0978 where it found sellers. The pair is currently correcting lower, and it looks like it may move down towards the 38.2% Fib retracement level of the last move from the 1.0515 low to 1.0978 high.
There is a descending channel pattern formed on the hourly chart, which might act as a catalyst for the next move.
We can see the recent moves as a consolidation pattern with a slight bearish bias. The hourly RSI is just around the 50 level, which is an important sign in the near term for sellers.
German Industrial Production
Today, there is a minor risk event lined up in the Euro Zone, as the German Industrial Production, which measures outputs of the German factories and mines will be released by the Statistisches Bundesamt Deutschland. The forecast is slated for an increase of 0.7% in October, compared with the preceding month. If the result comes lower than the forecast, then we may witness some profit taking moves in the EURUSD pair.
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