- Summary:
- EURUSD trades lower for the second consecutive day after the pair met stiff resistance at the 50-day moving average. The Industrial Production in
EURUSD trades lower for the second consecutive day after the pair met stiff resistance at the 50-day moving average. The Industrial Production in European Monetary Union came in at -0.1% above the expectations of -0.2% in February. The Industrial Production yearly reading came in at -1.9%, also above the forecasts of -2%.
Christine Lagarde ECB President said that the incoming economic data have started to show unprecedented falls, pointing to a significant contraction in output in the euro area, as well as to rapidly deteriorating labour markets. Lagarde also added that ECB would explore all options and all tools to support the economy. The ECB’s recent policy actions have helped to improve conditions for funds.
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EURUSD Price Analysis
EURUSD is 0.30 lower at 1.0876, as the pullback from two-week highs accelerates today. The technical picture returns to the bearish mood as the pair failed to break and hold above the 50-day moving average. A credible close above the 1.0961 might cancel the recent negative trend.
On the downside, immediate support for the EURUSD pair stands at 1.0852 the daily low. Next support area would be met at 1.0829 the low from April 8 trading session. If the pair breaks that support level, then the next target for sellers is at 1.0768 the April 6 lows.
On the other side, the first resistance for the pair stands at 1.0911 the daily high. If the pair breaks that resistance then the next target is at 1.0961 the 50-day moving average. The next resistance for EURUSD pair is at 1.0992 the high from April 15 trading session.