The single currency was trading lower against the greenback during the London session on Wednesday, with the EURUSD pair spotted slightly below the 1.16 level at the last check.
Earlier today, the euro zone’s industrial production came out very weak. The year-on-year change crashed from 2.3% to -0.1%, whilst the monthly gauge stayed at -0.8%. Both numbers came below analysts’ expectations and both previous month’s figures were revised lower.
Investors will now pay attention to the US PPI indices, which are due later in the day. The yearly change is seen slowing, albeit marginally, to 3.2% from 3.3% previously. The core indicator is expected to stay unchanged at 2.7%.
Volatility has been low so far on the day and should the euro climb back above the 1.16 handle, we could see another bullish wave toward 1.1640/50. On the downside, the support is at 1.1570 and if not held, further weakness to the current swing lows at 1.1530 could occur.
The EURUSD pair is also forming a descending triangle on the two hour chart, which is a bearish formation. Should the euro fall below the mentioned supports, the potential of this triangle could be around two figures.