- EUR/USD is probing the crucial 100-day moving average support at 1.1270.
- The pair closed below 1.1283 on Thursday, confirming a bearish candlestick pattern.
- EUR/USD will likely find acceptance below the 100-day MA in Europe if China reports a weaker-than-expected macro data.
EUR/USD is sitting on the 100-day moving average (MA) support of 1.1270 with investors awaiting the release of China’s industrial production and retail sales data for May.
The currency pair closed below 1.1283 on Thursday, validating the bearish outside day candle created on Wednesday.
Put simply, the bounce from recent lows near 1.11 seems to have made a temporary top at 1.1348 and the stage is set for a deeper pullback in case China’s macro data, due for release at 07:00 GMT, revives fears of a sharp slowdown in the world’s second largest economy.
China’s industrial production is forecasted to increase by 5.5% year-on-year in May following a 5.4% rise in April. meanwhile, consumer spending, as represented by retail sales, is expected to have increased at an annualised rate of 8.1% in May, following April’s 7.2% growth.
A big beat on industrial production is required to put a strong bid under the risk assets and weaken haven demand for the US Dollar.
However, if the data is weak, then the pair could find acceptance below the 100-day MA support at 1.1270 ahead of the US retail sales data, scheduled for release at 12:30 GMT.
German Wholesale Price Index (YoY) (May) due at 06:00 GMT is unlikely to have a big impact on the EUR pairs, unless the actual number prints way above or below estimates, in which case it would draw market attention.
|Today last price||1.1272|
|Today Daily Change||-0.0004|
|Today Daily Change %||-0.04|
|Today daily open||1.1276|
|Previous Daily High||1.1304|
|Previous Daily Low||1.1268|
|Previous Weekly High||1.1348|
|Previous Weekly Low||1.116|
|Previous Monthly High||1.1266|
|Previous Monthly Low||1.1107|
|Daily Fibonacci 38.2%||1.1282|
|Daily Fibonacci 61.8%||1.1291|
|Daily Pivot Point S1||1.1261|
|Daily Pivot Point S2||1.1247|
|Daily Pivot Point S3||1.1225|
|Daily Pivot Point R1||1.1297|
|Daily Pivot Point R2||1.1319|
|Daily Pivot Point R3||1.1333|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.