EUR/USD snaps longest daily winning streak in 3.5-months


  • EUR/USD posted marginal losses on Monday, ending a four-day winning streak. 
  • The 21-day moving average is the level to beat for the bulls. 
  • Lead indicators suggest Germany's industrial production dropped in August. 

EUR/USD fell 0.06% on Monday, snapping the four-day winning run, which was the longest since June.

Notably, the currency pair faced rejection at the 21-day moving average for the third straight day on Monday. Hence, the average, currently located at 1.0992 is the level to beat for the bulls. A daily close above that level is needed to revive the corrective bounce from recent lows near 1.0880.

Focus on German data

The data scheduled for release at 06:00 GMT is expected to show the German Industrial Production fell 0.3% month-on-month in August, having dropped 0.6% in the preceding month. The annualized figure is forecasted to print at -2.7% versus -4.2% in July.

German Factory Orders fell 0.6% month-on-month in August – the second straight monthly decline – due to lower demand from domestic consumers, the official data showed on Monday. 

Also, the headline IHS Markit/BME Germany Manufacturing PMI for February – a single-figure snapshot of the performance of the manufacturing economy – had printed well below 50, signaling contraction.

Put simply, the industrial production data is unlikely to surprise the market with a positive print.

That said, the German slowdown is generally accepted by now and price in. Hence, EUR/USD may remain resilient if the German Industrial Production drops as expected. 

A bigger-than-expected drop could invite stronger selling pressure, while a big beat on expectations could help EUR/USD revisit the newfound 21-day MA resistance at 1.0992.

In the US session, the pair will likely take cues from the US Producer Price Index and comments by Federal Reserve's President Powell.

As of writing, EUR/USD is trading largely unchanged on the day near 1.0975. 

Technical levels

EUR/USD

Overview
Today last price 1.0975
Today Daily Change 0.0003
Today Daily Change % 0.03
Today daily open 1.0972
 
Trends
Daily SMA20 1.0995
Daily SMA50 1.1059
Daily SMA100 1.115
Daily SMA200 1.1229
 
Levels
Previous Daily High 1.1001
Previous Daily Low 1.0962
Previous Weekly High 1.1
Previous Weekly Low 1.0879
Previous Monthly High 1.111
Previous Monthly Low 1.0885
Daily Fibonacci 38.2% 1.0977
Daily Fibonacci 61.8% 1.0986
Daily Pivot Point S1 1.0956
Daily Pivot Point S2 1.0939
Daily Pivot Point S3 1.0917
Daily Pivot Point R1 1.0994
Daily Pivot Point R2 1.1017
Daily Pivot Point R3 1.1033

 

 

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