Tuesday, December 8, 2009
Temples in Burma
After attempting to recover from 1.4780, EUR/USD has been rejected by the 1.4865 resistance with the pair retreating back to levels close to 1.4820 on the back of the unexpectedly decline in industrial production in Germany during October.
The EUR/USD is currently trading around 1.4815/25, just below today's opening price action at 1.4825.
German industrial production has fallen 1.8% between September and October, against of market expectations of 1.1% increases and September data of 2.7% advance. Year over year, industrial production has decline 12.4% in October, worse than 10.2% decrease expected by market and just below 12.9% decline posted in September.
George Clement, analyst at Swiss e Trade, comments: “The euro, recovering moderately against the dollar this European morning, is currently trading at 1.4840, off from its lows at 1.4785. We expect more of the present recovery to come today, but not above the 1.4880 resistance level, which we see remaining intact. As a range-trading market is in development, the price around 1.4800 might be tested again.”