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The EUR/USD pair has tried to accentuate the progress shown since the beginning of the week yesterday, marking a peak at 1.1175, but traders did not seem to dare to push up to test the top of last week, on 1.12, which eventually resulted in a correction.
The movement has then been accentuated by the publication of strong us data that strengthened the Dollar. We remind you that building permits posted a surprise increase for the month of November, while housing starts rose more than expected. Industrial production, which rose 1.1% in November versus +0.8% expected, also had an upward impact on the Dollar.
In this context, the EUR/USD has waned to a low point to 1.1125 on Wednesday morning, before the IFO index exceeds the expectations leads to slight gains.
The business climate index for German gdp to 96.3 points for the month of December, compared with 95.5 in advance, and 95.1 previously (revised up from 95), but the positive impact on the Euro remains very limited.
The technical signals bearish lately on EUR/USD
From a technical point of view, it is to be noted that the EUR/USD is back under its 200-day moving average, currently at 1.1150, and also below the moving average 100 hours currently to 1.1143.
The upward trend visible since the beginning of the month of December begins, therefore, to take the lead in the wing. If the situation is shifting towards a bearish reversal, thresholds to monitor, to be on the moving average of 200 hours (1.1113), before the psychological threshold of 1.11, then the moving average 100 days to 1.1065.
Under this threshold, we will consider that the sellers control the market, and that a continuation of the decline towards the psychological threshold of major 1.10 becomes the most likely scenario.
Has the upside, the 200-day moving average at 1.1150 and the psychological threshold of 1.12 remain the two main resistances to be taken into account in the short term.