- The knee-jerk in USD lifted the pair above the 1.16 handle.
- DXY drops to the area of 95.00, where some support emerged.
- German Industrial Production missed expectations in June.
The European currency is recovering the smile on Tuesday, pushing EUR/USD back to the boundaries of 1.1600 the figure, where sellers appear to have been waiting.
EUR/USD looks to data, China
The pair picked up extra traction today after bottoming out in the 1.1530 region at the beginning of the week, testing the 1.1600 milestone albeit meeting quite a strong resistance at these levels.
The better tone in the Chinese Yuan is dragging USD/CNY lower today, therefore impacting on the demand for the greenback and sustaining the corrective up move in spot, all amidst the persistent verbal escalation in the US-China trade front and headlines from the PBoC.
Earlier in Euroland, German Industrial Production figures disappointed investors in June, contracting at a monthly 0.9% and reverting May’s 2.4% expansion (revised from 2.6%). In the same line, the trade surplus shrunk to €19.3 billion vs. €21.4 billion expected during the same period.
In the US data space, JOLTs Job Openings and the IBD/TIPP index is coming up next.
EUR/USD levels to watch
At the moment, the pair is up 0.41% at 1.1602 and a breakout of 1.1635 (10-day SMA) would aim for 1.1661 (21-day sma) and finally 1.1745 (high Jul.30). On the other hand, immediate support emerges at 1.1527 (low Jun.28) seconded by 1.1508 (2018 low May 29) and then 1.1479 (low Jul.20 2017).
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