- EUR / USD stops the initial rally to the 1.1830 zone.
- EMU industrial production surprised to the upside in July.
- US industrial production expanded 0.4% month-on-month in August.
The buy bias remains unchanged around the European currency, with the EUR/USD posting decent gains around 1.1820.
EUR / USD rises due to the correction of the dollar
EUR / USD is trading positively, although it came under some initial selling pressure at daily highs at the 1.1830 zone, where the 10-day SMA converges.
The bullish bias in the pair has so far been sustained by selling pressure hurting the dollar despite the rally in 10-year US bond yields near the 1.30% hurdle.
On the data front, industrial production in the euro zone overall expanded 1.7% month-on-month in July and 7.7% year-on-year.
On the other hand, MBA mortgage applications increased by 0.3% weekly. Furthermore, export prices rose 0.4% month-on-month in August and import prices contracted 0.3% month-on-month. Other results saw New York’s Empire State Index improve dramatically to 34.3 in September, industrial production expanded 0.4% month-on-month over the past month and manufacturing output rose 0.2% month-on-month. Lastly, capacity utilization improved slightly to 76.4%, also in August.
Technical levels
So far, the pair is gaining 0.14% at 1.1819 and is facing the next bullish barrier at 1.1909 (September 3 monthly high) followed by 1.1932 (100-day SMA) and finally 1.2000 (psychological level). On the other hand, a break below 1.1770 (September 13 weekly low) would target 1.1704 (March 31 monthly low) on its way to 1.1663 (August 20 low).
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