Euro registered weakest level against the US dollar during the past week.
The pair is hovering around a critical support at 1.3700 level, as EURUSD buyers are putting up a fight nearby the mentioned support zone.
German Industrial production
Moments ago, German industrial production data was published by the Statistisches Bundesamt Deutschland. The outcome was mixed, as production in industry was up by 0.4% from the previous month on a price, beating the expectations of 0.3%. However, the previous reading was revised down from 0.8% to 0.7%. The report also points that the energy production and production in construction were down by 0.3% and 0.1% in February 2014, and production in industry excluding energy and construction grew by 0.5%. EURUSD seems to be liking the data, as pair climbed back above 1.3705 level.
Eurozone’s Sentix Investor Confidence Index
Later, we have Eurozone’s Sentix Investor Confidence Index scheduled for release. The market is expecting a minor rise in the index from previous reading of 13.9 to 14.2. If the outcome does not disappoint, then the Euro can surge higher Intraday.
Technical Analysis
There is an important channel forming on 4 hour timeframe for the pair. EURUSD has failed many a times around the channel resistance zone, which currently lies around 1.3780 level. One more important point to note here is that 200 and 100 simple moving averages also sits around the same resistance zone. So, buyers might struggle to break the channel, but if they succeed, then the pair could accelerate higher towards 1.3820 level.
On the downside, 1.3660 level holds the key, which represents 61.8% retracement level of the last leg higher from 1.3473 low to 1.3972 high. The channel support also lies around the same support zone. AUDUSD is trading below all three key moving averages (200, 100 and 50) and RSI is nearby extreme levels. Current price is 1.3705, with resistance ahead at 1.3730 and support to the downside can be found at 1.3700 and 1.3660 (Channel support and 61.8% fib).
Prepared by Aayush Jindal, Chief Technical Strategist at Capital Trust Markets
