EUR/USD supported at 20-DMA, despite poor IP data

The EUR/USD pair regains the bids and attempts a minor-recovery from 20-DMA support, with markets having ignored worse-than expected industrial figures from the Eurozone.

EUR/USD fades a spike to 1.1240

Currently, EUR/USD trades modestly higher at 1.1223, recovering slightly from session troughs of 1.1215, where the 20-DMA intersects. The main currency pair stalled its recovery near 1.1240 region and dropped nearly 30-pips to daily lows, before recovering some ground over the last hour on the back of fresh selling witnessed in the greenback against most of its major peers.

Meanwhile, the bulls remain unperturbed by sluggish industrial production data from the 19-naition bloc as weaker treasury yields continue to favor the euro at the expense of the buck. Eurozone industrial production dropped -1.1% in July versus -0.9% exp m/m and +0.8% previous.

Next of note for the major remains the second-liner economic data in the import prices from the US due later in the NA session, while a fresh batch of significant macro data from both continents will be reported on Thursday.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1300 (round number). A break beyond the last, doors will open for a test of 1.1343 (Aug 28 high). On the flip side, the immediate support is placed at 1.1200 (round figure) below which 1.1175 (200 & 100-DMA) could be tested.