- The Euro is currently under pressure and may soon challenge 1.1700 against the US Dollar.
- The EUR/USD pair is currently forming a short-term breakout pattern with support at 1.1720 on the hourly chart.
- Today in the Euro Zone, the Industrial Output for June 2017 was released by the National Institute of Statistics.
- The outcome was above the forecast, as there was a rise of 1.1% in the output (MoM).
EUR/USD Technical Analysis
The Euro fell sharply from the 1.1890-1.1900 swing high against the US Dollar and moved below 1.1850. The EUR/USD pair even traded above the 1.1800 handle and cleared an ascending channel on the hourly chart.
There was even a close below the 1.1750 support, which has opened the doors for further declines.
At the moment, the pair is forming a short-term breakout pattern with support at 1.1720 on the hourly chart
EUR/USD Hourly Chart
It may soon break the 1.1720 support and trade towards the 1.236 extension of the last leg from the 1.1727 low to 1.1822 high.
On the upside, the channel resistance is near 1.1750. Above it, there is a trend line resistance at 1.1775.
Any further gains would be limited by the 1.1850 level. The overall trend is short-term bearish for EUR/USD with chances of declines towards 1.1700 or even 1.1680.
Italian Industrial Output
Today in the Euro Zone, the Industrial Output for June 2017 was released by the National Institute of Statistics. The forecast was lined up for an increase of 0.2% compared with the previous month.
The actual result was above the forecast, as there was a rise of 1.1% in the output. In terms of the yearly change, the market was looking for a rise of 3.4% in the output in June 2017 compared with the same month a year ago. Again, the result was positive, as there was an increase of 5.3%. The report stated that:
The calendar adjusted industrial production index increased by 5.3% compared with June 2016 (calendar working days in June 2017 being the same as in June 2016); in the period January- June 2017 the percentage change was +2.2 compared with the same period of 2016.
Overall, the Euro may correct a few pips higher, but most likely to face sellers near the 1.1750 and 1.1800 resistance levels.