The pair gave a strong close at yesterday’s session manages to close above 20dsma after six attempts.
German factory orders- Based on provisional data, the Federal Statistical Office (Destatis) reports that price-adjusted new orders in manufacturing in August 2015 decreased a seasonally and working-day adjusted 1.8% on July 2015. In July 2015, the decrease on the previous month showed a corrected –2.2% (primary –1.4%). In August 2015, domestic orders decreased 2.6% and foreign orders 1.2% on the previous month. As regards the direction of trade in foreign transactions, new orders from the euro area were up 2.5% on the previous month, new orders from other countries decreased 3.7%.
Upcoming event: Today traders eye August German industrial production. The readings are upbeat in July after July drop. Analysts are expecting 0.3% in August, because of Chinese crisis.
Technical view: The pair manages to close above all the hourly daily moving averages. The 20wsma finds at 1.1150 has been supporting the pair for 3 consecutive weeks pushing the euro higher.
The immediate strong weekly resistance seems at previous weeks high 1.1330 and 1.1380 50wsma.
Twice the pair rejected at 50wsma. In the weekly charts, the pair has been forming bullish patterns.
In our early reports, a couple of time we forecast big moves on the higher side towards 1.1800 and 1.2000 levels. These levels might be possible if break out witness on the weekly chart.
Intraday resistance seems at 1.1290, 1.1320 and 1.1340
Support finds at 1.1250, 1.1220 and 1.1180
Use a dip favors the trend.