EURUSD Starts Corrected
The euro traded slightly to the south around 1.1775 against the US dollar after German industrial production fell -1.0%, below market expectations.
Investors now appear to be cautious amid the risks of a full-scale global trade war and increasingly focused on the G7 Summit in Canada. Nevertheless, the pair remains on track to book a weekly gain of more than 1.0% and potentially ends on a positive note for the second week in a row.
Earlier the EURUSD uptrend reached 1.1839 on Thursday’s session, testing the 1.1837 resistance zone, but failed to break it as the pair finally closed at 1.1799.
Indication of the correction was immediately seen on the hourly and 4-hour charts although EURUSD is also still above support at 1.1760. Other support at 1.1710.
If the first support holds, EURUSD is still likely to rise again at least to retest the 1.1800 intraday resistance zone and then move sideways. Other resistances are 1.1837 and 1.1860.