EURUSD trading close to two-week lows adding 0.10% at 1.1116. A better German Industrial Production s.a. (month over month) which came in at 1.1%, topping expectations of 0.7% in November supports the common currency, the yearly reading also beat forecasts as it came in at -2.6% beating expectations of -3.8%. The Germany Trade Balance registered at €18.3B below estimates of €20B in November.
Yesterday, the U.S. ADP Employment Change registered at 202K, beating forecasts of 160K for December. The United States MBA Mortgage Applications rise 13.5% on December 27, the previous reading was at -5.3%.
Read our Best Trading Ideas for 2020.
EURUSD Strong Support at 1.11
EURUSD correction from the December highs at 1.12238 stalled around the support at 1.11 A move that has cancelled the positive momentum for the pair as it breached below the 200-day moving average.
Bears in order to seize control need a credible break below the 1.11 support. In that case the next support will be provided by the 50-day moving average at 1.1090. Bears will gain traction below that level and a test of the 100-day moving average at 1.1062 would be possible.
On the upside initial resistance for EURUSD stands at 1.1120 the daily top. A break above the 200-day moving average might refuel theee bullish momentum with an attempt to 1.1164 the high from January 6th.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Nikolas on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.