EUR/USD advances toward 1.1385, bearish correction completed

EUR/USD resumes its advance, trading in the 1.1300 price zone after posting a daily low of 1.1267 following German Industrial Production. The pair now looks for a retest of the 1.1385 area, Valeria Bednarik, a Chief Analyst at FXStreet, reports.

Key quotes

“Germany published April Industrial Production, which fell in the month by 17.9%. When compared to a year earlier, it collapsed by 25.3%, much worse than the previous -11.3%. The EU June Sentix Investor Confidence improved from -41.8 to -24.8, slightly worse than expected.”

“EUR/USD is trading just above a bullish 20 SMA, in its 4-hour chart, after briefly piercing earlier in the day. Technical indicators hold on to positive ground, although the decline stalled, and are now consolidating and slowly gaining strength upwards, suggesting that the corrective decline may be complete.” 

“A recovery beyond 1.1310 should indicate renewed buying interest and favor a continued advance toward 1.1385. The corrective decline could accelerate if the pair loses the 1.1260 area.”