FxWirePro: EUR/USD Trade Idea

EUR/USD chart - Trading View 

Technical Analysis: Bias Bearish

EUR/USD has failed to hold break above 200-DMA, bias is strongly bearish.

The single currency largely unimpressed by month-on-month rise in German Industrial production in May.

Data released by the federal statistics authority Destatis showed Germany unexpectedly rose 0.3% m/m in May, much more than a 0.4% drop expected and -1.9% last.

However, on an annualized basis, the German industrial production arrived at -3.7% versus -1.1% expected and -1.8% booked in April.

Meanwhile, the German trade balance came in at EUR 18.7B in May, slightly more than EUR 18.6B expected and EUR 17.0B previous.

The major trades in a major bearish trend and has resumed weakness with 'Shooting Star' formation on the weekly charts.

Technical indicators on the daily charts are biased lower. The pair has broken below cloud top and 55-EMA support. Momentum with the bears.

Next major support lies at cloud bottom at 1.1173. Break below eyes trendline support at 1.1115.

Immediate resistance lies at 55-EMA at 1.1262. Bearish invalidation only above 200-DMA.

Support levels - 1.1181 (June 18 low), 1.1167 (Lower BB), 1.1115 (Trendline)

Resistance levels - 1.1262 (55-EMA), 1.1280 (21-EMA), 1.1330 (200-DMA)

Recommendation: Good to go short on upticks, SL: 1.1260, TP: 1.1180/ 1.1165/ 1.1115

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.