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German industrial production preview: What to expect in EUR/USD?

FXStreet (Mumbai) - The EUR/USD pair keeps the overnight side-trend intact, wavering between 1.1285-1.1260 zone, as markets digest the latest economic news from the US and Germany, and now await the minutes of the Sept 17 Fed meeting for further momentum.

German industrial production to cool-off in August

The EUR calendar will kick-off with the German industrial production release, which is projected to see a 0.2% growth on monthly basis, compared to 0.7% increase in July. While annually, the industrial figures are expected to advance 3.3% after a 0.5% growth seen a month ago.

In wake of Tuesday’s poor German factory orders data, which sank to 1.8% in Aug versus a 0.5% gains expected, markets appear to believe that the German industrial output will also disappoint both on month-on-month and annual basis.

EUR/USD: bearish on German data? Levels to monitor

Ahead of the German data, the EUR/USD pair has turned lower and mires around the session lows struck near 1.1260. On the upside, the major faces immediate resistance near 1.1285-1.1290 region (Sept 29, Oct 5 and Today’s High) beyond which post NFP highs at 1.1319, could act as a strong hurdle. A breach of the last could open doors for a test of 1.1400 (round number). Should the data meet expectations or come in below estimates , we could see the pair drop to the immediate support located at 1.1230 region, which is the confluence zone of the 5, 20 & 50-DMA, below which 1.1209 levels (hourly 100 & 200-SMA) could come into the picture. A failure to resist the last, the prices could drown to 1.1147 (100-DMA)

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