- The Euro surged higher recently and traded above a major resistance of 1.1405 against the US Dollar.
- The EUR/USD pair broke a consolidation triangle pattern with resistance at 1.1410 on the hourly chart to clear the upside path.
- Today in the Euro Zone, the Industrial Production for May 2017 was released by the Eurostat.
- The outcome was above the forecast of +1.1%, as there was an increase of 1.3% (MoM).
EUR/USD Technical Analysis
The Euro after finding bids near 1.1320 against the US Dollar started an uptrend and traded towards 1.1430. Later, the EUR/USD pair started a consolidation phase above 1.1380.
There was a triangle pattern with support at 1.1380 formed on the hourly chart. After completing, the consolidation, the pair broke the 1.1410 resistance to clear the upside path.
EUR/USD Hourly Chart
The upside move was swift and the pair traded as high as 1.1488. Then, a correction wave started and the pair moved below the 23.6% Fib retracement level of the last wave from the 1.1381 low to 1.1488 high.
There is a bullish trend line at 1.1430, which is likely to act as a buy zone and protect downsides.
Moreover, the 38.2% Fib retracement level of the last wave from the 1.1381 low to 1.1488 high is most likely to hold losses.
As long as the pair remains above the trend line support or 1.1420, it remains in the bullish trend for more gains in the short term.
Euro Zone Industrial Production
Today in the Euro Zone, the Industrial Production for May 2017 was released by the Eurostat. The forecast was lined up an increase of 1.1% compared with the previous month.
The outcome was above the forecast of +1.1%, as there was an increase of 1.3%. In terms of the yearly change, the forecast was of +3.6%, but the actual was +4%. The report stated that:
The increase of 1.3% in industrial production in the euro area in May 2017, compared with April 2017, is due to production of capital goods rising by 2.3%, durable consumer goods by 1.8%, non-durable consumer goods by 1.2%, energy by 0.9% and intermediate goods by 0.3%.
Overall, the market sentiment is positive, and the EUR/USD pair remains well supported on the downside near 1.1420 in the near term.