Technical Analysis EUR/USD for 11/9/15

The combination of a stronger than expected U.S. payroll report and a soft German Industrial production reading pummeled the EUR/USD down to 1.07.  The exchange rate sliced through horizontal trend line support near the July lows at 1.812, which is now seen as resistance.  The exchange rate will likely target the March 2015 lows at 1.0480.  The one caveat is that the RSI is now printing a reading of 27, which is below the oversold trigger level of 30 and could foreshadow a correction.

German industrial production dropped -1.1% month over month in September, after already falling -0.6% month over month in August. Manufacturing was down -1.4% month over month, and construction dropped -0.9% month over month. The data are much weaker than initially expected, but not a surprise after Thursday’s slump in manufacturing orders.