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The Oversold Euro Consolidates Following ECB Speak
The EUR/USD chopped around on ECB-speak, with ECB’s Visco saying that the possibility of a deposit rate cut will be assessed at the December policy meeting, while his more hawkish colleague Hanson said that he thought there isn’t a need to cut rates at the moment. However, the euro near 1.0720 and left trend low at 1.0674 a target.
Eurozone industrial production dropped -0.3% month over month in September, the second consecutive contraction, which left production up 0.1% quarter over quarter in the third quarter of the year. Still an improvement versus the -0.2% quarter over quarter drop in the second quarter and thus backing estimates of ongoing overall growth in Q3, ahead of tomorrow’s GDP release.
Resistance on the currency pair is now seen near the 10-day moving average at 1.0844, while target support is seen near the March 2015 lows ta 1.0480. Momentum remains negative with the MACD (moving average convergence divergence) index printing in the red with a downward sloping trajectory. The only caveat is that the RSI is oversold printing a reading of 29, which is below the oversold trigger level of 30 and could foreshadow a correction.
The post The Oversold Euro Consolidates Following ECB Speak appeared first on Forex Circles.
