EUR/USD (current price: 1.0689)
German Industrial Production came in well below the expected 0.2%, with a decline of -3.0%. The French Trade Balance was better than expected in January, but the common currency still headed lower amid the broad Dollar strength. The U.S. Trade Balance was slightly less negative than expected, helping the USD in finishing near its intraday highs against the Euro. The most traded pair remains positive for the year, but the 13-year lows near 1.0350 are still close to the current rate.
Our assessment: The cross drifted out of a rising short-term trend channel this week, after getting close to the 1.0850 level. The long-term picture remains neutral, with strong support at 1.05.
