EUR/USD (current price: 1.1137)
German Trade Balance and Italian Industrial Production both came in better than expected yesterday, with readings of 22.2 billion and 1.7% respectively. The most important pair turned lower again despite the bullish releases, as it still trades inside a choppy short-term trading range, near the 200-day MA. The Eurozone Sentix Investor Confidence Index also beat expectations on Monday, but the common currency still fell against the Dollar, as the U.S. economy and the Federal Reserve remain more supportive of the currency than their European counterparts.
Our assessment: EUR/USD closed below the 200-day MA again on Monday, but the pair is still inside a short-term consolidation pattern, without a clear long-term direction.
