When are the German Factory Orders and how could they affect EUR/USD?


German Factory Orders overview

German factory orders are forecasted to have risen by 0.6% month-on-month in December, having dropped by 1.3% in November. The annualized figure is expected to come in at -6% compared to the previous month's -6.5%. The data will be released at 07:00 GMT. 

Mixed lead indicators

IHS Markit’s German Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about a fifth of the economy, fell to 43.7 in December from November’s five-month high of 44.1, signaling a deeper contraction. 

However, the forward-looking survey measures for new orders and output expectations had improved. 

So, Factory Orders may have rebounded in December, as expected by economists. 

Impact on EUR

EUR/USD found acceptance under 1.10 on Wednesday – it's first below-1.10 close since October. The psychological support was breached with a red marubozu candle, which represents strong bearish sentiment. 

The pair, therefore, is on the defensive and could suffer a deeper drop to 1.0941 (Oct. 8 low) on weaker-than-expected German data. 

A big beat on expectations could put a strong bid under the single currency, although the bearish outlook would be invalidated only if the spot manages to close above Wednesday's high of 1.1048. 

At press time, EUR/USD is trading just below 1.10.

Technical levels

EUR/USD

Overview
Today last price 1.0998
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 1.0998
 
Trends
Daily SMA20 1.1075
Daily SMA50 1.1102
Daily SMA100 1.1072
Daily SMA200 1.1126
 
Levels
Previous Daily High 1.1048
Previous Daily Low 1.0994
Previous Weekly High 1.1092
Previous Weekly Low 1.0992
Previous Monthly High 1.1225
Previous Monthly Low 1.0992
Daily Fibonacci 38.2% 1.1015
Daily Fibonacci 61.8% 1.1027
Daily Pivot Point S1 1.0979
Daily Pivot Point S2 1.0959
Daily Pivot Point S3 1.0925
Daily Pivot Point R1 1.1033
Daily Pivot Point R2 1.1067
Daily Pivot Point R3 1.1087

 

 

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