EUR/USD reversing the move pressured by Germany again

By FXstreet.com | August 06, 2014 AAA

FXStreet (Moscow) - EUR/USD opened the day at 1.3381, edged higher to 1.3391, but turned around reaching 1.3370 at the moment. Weak German data helped the move.

Draghi needs to decide

The pair is under pressure, and will have hard time recovering before the key release from the euro zone this week – the ECB meeting. The recently received evidence of weakening industrial production numbers in Germany (0.3% m/m vs 1.3% m/m expected) puts Draghi in tough position. On the one hand, he doesn’t want to hurry up with additional stimulus after TLTRO and rate cuts were already introduced. But on the other hand, the current numbers may reflect just the beginning of the trend, and if Germany starts to sneeze, the whole euro zone may catch a cold. And now when we know that Russia introduced the ban on products from countries that imposed sanctions against it, the situation may become even tougher.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.3368, with support below at 1.3347, 1.3312 and 1.3291, with resistance above at 1.3403, 1.3424, and 1.3459. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.3404 and the daily 20EMA bearish at 1.3466. Hourly RSI is bullish at 58.

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