Review- The single European currency supported by the Industrial production data gave an uptick. Industrial production went up by 0.1%, according to the estimates from the Eurostat. In September 2014, industrial production growth was revised down to 0.5% after the projected 0.6%. In October 2014, this indicator increased by 0.7% on a yearly basis. The industrial production is 0.8% up as compared to the same month a year ago.
WEEKLY ECONOMIC DATA IMPACT ON THE PAIR
Monday EUR- German Buda monthly report
USD - Industrial and Manufacturing, Production, NAHB Housing Market Index
Tuesday EUR - French, German, and Euro zone Flash manufacturing PMI, services PMI, Euro zone Balance of Trade, and German ZEW Sentiment
USD - Building Permits, Housing Starts
Wednesday EUR - Euro zone Inflation and Core CPI
USD - Core Inflation, Federal Reserve Rate Decision
Thursday EUR - German Ifo business climate
USD - Jobless Claims Data
Friday EUR- German consumer climate and PPI data
Technical view:
At Friday's session, the pair was unable to breach 1.2495 (Thursday's high) levels. Today, the pair opened on a bearish note trading on a downtick with the strong US dollar. Today, the pair direction will be determined at the US session by the industrial production report and NAHB housing market index. We are expecting an uptick from the US data. The pair has a strong resistance zone between 1.2507 and 1.2530. The hourly resistance exists at 1.2494. In case of negative readings on the US data, it may ignite some bullish power above 1.2530 with the targets at 1.2600. The intraday support exists at 1.2370. The hourly support exists at 1.2420 and 1.2400. We recommend selling with the targets at 1.2420, 1.2400, and maybe even at 1.2370 levels.
We can expect panic selling below 1.2360 levels.
