Today, considerable attention will be paid to the fundamental data, as well as the speech of the President of the European Central Bank, Mario Draghi.
The growth of the European currency, judging by the schedule, can significantly slow down, which will lead to a downward correction in the EUR/USD trading instrument up to the update of significant support levels, however much will depend on reports on fundamental statistics.
In the first half of the day, all attention will be focused on the results of the survey of supply managers. It is also expected that industrial production of the euro area will grow by 0.6% in August this year after rising 0.1% in July. If the data are worse, then the pressure on the euro could increase already at the European session.
The report on the producer price index in the US can provide good support to the US dollar, as inflation may reinforce the Federal Reserve's plans to further raise interest rates in the US, which were discussed yesterday in detail in the minutes of the September meeting. It is expected to grow by 0.4% in September this year, after rising 0.2% in August.
The speech of European Central Bank President Mario Draghi will also be under the close attention of market participants. Any information on the actions of the Central Bank related to changes in the bond repurchase program can support risky assets, which will lead to renewed demand for the euro and the next update of monthly highs.
However, taking into account the fact that the EUR/USD pair is at rather high levels, and the daily chart is trading in the region of 30- and 50-day moving averages, it is not entirely correct to talk about the continuation of the upward trend above these levels, without significant downward correction.
As for the technical picture of EUR/USD in the short term, it is best to pay attention to the new euro purchases after the reduction and update of the interim support of 1.1841, where a rather large number of players will be concentrated today. A break below this level will lead to the demolition of a number of stop orders and the return of the European currency to the area of 1.1800.
In the case of a breakthrough of the resistance level of 1.1880, one can expect a larger upward trend in the area of 1.1930.
Today, the G20 meeting starts, at which issues, primarily related to political problems in Spain, will be discussed. Any positive news in this direction can also support the European currency.
