EUR/USD logs longest daily losing streak in two months

EUR/USD has dropped for three straight days, the biggest losing streak since early September.
German industrial production may miss estimates, according to lead indicators.
Weak data will likely invite stronger selling pressure, as suggested by technical charts.

Omkar Godbole FXStreet Contributor

EUR/USD has charted the longest daily losing streak in two months ahead of the data in Germany, which is expected to show the factory activity contracted in September.

The currency pair closed 0.10% lower on Wednesday, having shed 0.33% and 0.48% on Monday and Tuesday, respectively. The three-day losing streak is the longest since early September. Back then, the pair had dropped for six straight days to Sept. 2.

At press time, the pair is trading at 1.1059, representing a 0.06% drop on the day. The technical outlook turned bearish with Wednesday's close below 1.1073, which confirmed a double top bearish breakdown on the daily chart.

Put simply, the pair is on the defensive ahead of a key macro data release.

Focus on German data

The data due at 07:00 GMT is expected to show the Industrial Production fell by 0.4% month-on-month in seasonally adjusted terms in September. The annualized figure is forecasted to print at -2.9% versus -4% in August.

Germany's manufacturing recession had deepened in September with the IHS Markit’s Purchasing Managers’ Index (PMI) falling to 41.7 in September to register the lowest reading since 2009.

Therefore, the probability of industrial production missing estimates is high. That would bolster the bearish technical setup, possibly yielding deeper losses in the common currency.

A big beat on expectations may bode well for the EUR. However, a strong close above 1.1073 is needed to invalidate the bearish setup.

Technical levels

EUR/USD

Overview
Today last price	1.1059
Today Daily Change	-0.0009
Today Daily Change %	-0.06
Today daily open	1.1069

Trends
Daily SMA20	1.1101
Daily SMA50	1.104
Daily SMA100	1.1121
Daily SMA200	1.1193

Levels
Previous Daily High	1.1094
Previous Daily Low	1.1064
Previous Weekly High	1.1063
Previous Weekly Low	1.0941
Previous Monthly High	1.118
Previous Monthly Low	1.0879
Daily Fibonacci 38.2%	1.1076
Daily Fibonacci 61.8%	1.1082
Daily Pivot Point S1	1.1058
Daily Pivot Point S2	1.1047
Daily Pivot Point S3	1.1029
Daily Pivot Point R1	1.1087
Daily Pivot Point R2	1.1105
Daily Pivot Point R3	1.1116

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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