- EUR/USD fades the earlier spike to the 1.1830 region.
- EMU’s Industrial Production surprised to the upside in July.
- US Industrial Production expanded 0.4% MoM in August.
The buying bias remains unchanged around the European currency, with EUR/USD posting decent gains around 1.1820.
EUR/USD up on dollar’s correction
EUR/USD trades on a positive note although it came under some initial selling pressure at daily highs in the 1.1830 region, where converges the 10-day SMA.
The upside bias in the pair remains so far sustained by the selling pressure hurting the dollar in spite of the rebound in yields of the US 10-year note to the vicinity of the 1.30% hurdle.
In the data sphere, Industrial Production in the broader Euroland expanded 1.7% MoM in July and 7.7% YoY.
Across the pond, MBA Mortgage Applications rose at a weekly 0.3%. In addition, Export Prices rose 0.4% MoM in August and Import Prices contracted 0.3% MoM. Further results saw the NY Empire State Index improving sharply to 34.3 in September, Industrial Production expanding 0.4% MoM during last month and Manufacturing Production rising 0.2% MoM. Finally, Capacity Utilization improved a tad to 76.4%, also in August.
EUR/USD levels to watch
So far, spot is gaining 0.14% at 1.1819 and faces the next up barrier at 1.1909 (monthly high Sep.3) followed by 1.1932 (100-day SMA) and finally 1.2000 (psychological level). On the other hand, a break below 1.1770 (weekly low Sep.13) would target 1.1704 (monthly low Mar.31) en route to 1.1663 (2021 low Aug.20).
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