EURUSD Trades at Key Support; Can Euro Zone Data Push It Higher?

EURUSD
EURUSD

EURUSD is trading slightly lower at 1.1336 after opening at 1.1340. However, technicals suggest that the currency pair could soon trade higher. Could today’s roster of economic reports from the euro zone drive it higher?

Today, a few economic reports are listed on our forex calendar for release. Due at 7:00 am GMT, the German final CPI for June is expected to match its previous reading at 0.6%. Then at 10:00 am GMT, the industrial production report for May is eyed at 14.9%. Along with this, the euro one-wide ZEW Economic Sentiment for July is estimated at 55.8. Meanwhile, the German version of the report is anticipated at 60.1.

Better-than-expected readings could push EURUSD higher. Meanwhile, disappointing figures could weigh on the currency pair.

Technical Analysis

On the 1-hour time frame, it can be seen that EURUSD is currently testing a confluence of at 1.1340. This price aligns with the rising trendline when you connect the lows of July 10 and July 13. It also coincides with the 50% Fib level when you draw the Fibonacci retracement tool from the low of July 13 to its intraday high. Reversal candlesticks around this price could indicate that there are buyers in the market who are looking to push EURUSD higher. Should this happen, we could soon expect the currency pair to retest yesterday’s highs at 1.1374. If resistance at this price does not hold, the next ceiling could be at 1.1421 where EURUSD topped on June 10.

Alternatively, a strong close below the trendline support could invalidate the support level. It could suggest that there are still sellers left in the market that could drag EURUSD to 1.1300 where it bottomed yesterday. 

EURUSD, 1-Hour Chart

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