FXStreet (Edinburgh) - The single currency is now retracing the earlier spike to the area of 1.3640, dragging the EUR/USD back to the 1.3625/20 area.



EUR/USD hurt by data



The offered tone seems to now be gaining ground amongst traders, after poor industrial production figures in Euroland disappointed investors during May, contracting at a monthly pace of 1.1% from the 0.7% advance in the previous month. “We would need to see further PMI weakness before we become concerned about a stalling industrial (and wider) recovery. That being said, with industrial output still more than 12% below its pre-crisis peak, there remains a long way to go before the slack in the industrial sector is fully eroded”, suggested Martin van Vliet, Analyst at ING Bank.



EUR/USD levels to watch



At the moment the pair is up 0.13% at 1.3626 with the next resistance at 1.3651 (high Jul.10) followed by 1.3664 (high Jull.3) and then 1.3670 (55-d MA). On the flip side, a breach of 1.3588 (low Jul.8) would open the door to 1.3576 (low Jul.7) and finally 1.3574 (low Jun.23).