- EUR / USD finds resistance at 1.1830, it is sideways with a slight bearish bias.
- The dollar recovers after inflation data on Tuesday.
- Eurozone: industrial production rises more than expected in July.
EUR / USD bounced off around 1.1800 and climbed to 1.1831 marking a high for the day. Then he lost momentum and walked away from the highs. The pair continues with lateral movements, for now holding on 1.1800, but limited upside.
In the European session, the EUR / USD reached 1.1798, the lowest in two days before bouncing higher. The gains were driven by a weak dollar in the market.
The greenback continues to be hurt by a drop in Treasury yields. At the same time, a certain aversion to risk limits that weakness. The DXY loses 0.15% on Wednesday and is trading at 92.50.
The dollar took a hit on Tuesday, from which it managed to partially recover after US August inflation data. Manufacturing Empire and industrial production data will be released on Wednesday. Thursday will be the turn of retail sales and unemployment benefits. Analysts are watching these reports closely ahead of next week’s Federal Reserve meeting.
With regard to figures for the Eurozone, industrial production data were released on Wednesday that showed a rise in activity in July of 1.5%, above the expected increase of 0.6%. June figures were revised up from -0.3% to -0.1%.
Follow side
The EUR / USD bounce on Tuesday reached the 1.1850 zone, but again failed to break above that level and fell back. Thus it remained in the recent familiar range with support above 1.1800. Should it fall below 1.1800, further downward pressure would be expected. The next support is at Monday’s lows at 1.1769.
On the contrary, if a break of 1.1830 occurs, the euro would be positioned for a possible test at 1.1845 / 50. If this zone is exceeded, it could negate the slight downward bias that the EUR / USD has at the moment, based on the impossibility of the price to mark ascending highs.
Technical levels
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