The euro was expected to rise after the events that took place on Wednesday. However, the UK macroeconomic data turned out to be significantly worse than anticipated. As a result, the pound sterling began losing value, thus pushing other currencies lower. That is why the euro also dropped. Today, it is the euro that will cause a decline in other currencies. This time, the European macroeconomic report will affect the whole market. Thus, the eurozone industrial production may show a smaller rise of 4.5% compared to an increase of 5.1% in the previous period. Notably, it is the most optimistic forecast. Some analysts suppose that the indicator's growth may slacken to 4.1%. In any case, the eurozone economic recovery is likely to slow down.
Eurozone Industrial Production
Since the beginning of the trading week, the euro has lost more than 150 pips against the US dollar. This is a sharp change in a short period of time that could be described as an inertial movement. The price has already passed some important levels. However, speculators may push the price even deeper. Now, the quote is hovering near the local low of 2021.
Against such a significant price change, the RSI technical indicator dropped below the 20 level on the four-hour chart. This points to a high oversold level of the euro.
On the daily chart, we see a change in the mid-term trend. The trend that began in early June remains the main one.
Outlook
Although the euro is significantly oversold, it is likely to go on losing value. Thus, the currency may decline to 1.1400.
In terms of the complex indicator analysis, we see that technical indicators are signaling sell opportunities on the intraday and mid-term periods due to the prolongation of the downward movement.
