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EURUSD Eyes More Gains As Sentiment Improves

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Aayush Jindal

EURUSD Eyes More Gains As Sentiment Improves

Key Highlights

  • Euro after tumbling once against the US Dollar after the ECB event managed to gain bids on the downside.
  • The EURUSD pair recovered sharply and posted healthy gains recently.
  • In China, the Industrial output released by the National Bureau of Statistics of China posted an increase of 5.4% in January 2016, less than the forecast of 5.6%.
  • Chinese Retail Sales grew by around 10.1%, which was around the market forecast.

EURUSD Technical Analysis

The Euro closed this past week with a positive note, and traded above the 1.1100 levels. The pair broke a major resistance trend line on the 4-hour chart, and also traded above the 100 and 200 simple moving averages.EURUSD There are many positive signs for the EURUSD pair, and it looks like it may continue to trade higher in the near term.On the upside, the next resistance lies at 1.1220, and on the downside support can be at 1.1140.

Euro Area Industrial Production

Today, in the Euro Zone, the Industrial Production, which shows the volume of production of Industries such as factories and manufacturing will be released by the Eurostat. The forecast is slated for a rise of 0.88% in Jan 2016, and in terms of monthly change, the market is expecting an increase of 1.5%. If the expected rise is not in line with the forecast, then there is a chance of a decline in the near term in EURUSD.

ChineseIndustrial Production

Recently in China, there were a couple of economic releases scheduled. The Chinese Industrial output, which shows the volume of production of Chinese Industries such as factories and manufacturing facilities was released by the National Bureau of Statistics of China. The forecast was slated for a rise of 5.6% in Jan 2016. However, the increase was 5.4% in Jan 2016, compared with the same month a year ago.Moreover, the Chinese retail sales report was also released. The report stated that the retail sales grew by 10.12% in Jan 2016, compared with the same month a year ago. The forecast was slated for a rise of 10.8%.Overall, the market sentiment is not favoring any major decline in the Euro in the near term unless there is some news later during the upcoming sessions.
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