EURUSD after a short rebound above the 1.08 mark returned to three year lows after worse than expected construction output. The European Monetary Union Construction Output dipped -3.1% from previous 0.73% in December. Among the EU, the Member States, the largest decreases in production in construction were recorded in Germany (-8.7%), Poland (-3.4%) and Hungary (-3.0%). Increases were observed in Slovakia (+3.4%), Czechia (+1.6%) and Sweden (+0.3%). The yearly reading for the Construction Output came in at -3.7%, below the forecasts of 1.4%.
Yesterday another disappointment came from Germany. The February 2020 ZEW economic sentiment survey came in at 8.7 below the expectations of 21.5 the previous reading was at 26.7.
EURUSD is 0.02% lower at 1.0793 as of writing amid fresh selling pressure after weaker construction output figures. The technical outlook is clearly bearish for the pair and lower levels might be on the cards.
On the downside where traders focus is, the initial support for the pair stands at 1.0784 the daily low. If EURUSD breaks below the next target would be the 1.0708 low from April 20th2017. While more bids might emerge at 0.0681 the low from April 21st 2017.
On the other hand, first resistance for the EURUSD stands at 1.0807 the daily top. A credible break above would meet the next resistance at 1.0850 the high from February 17th trading session. More offers for EURUSD will be met at 1.0925 the high from February 12th.