German industrial output increased for a second consecutive month in October, a sign that a slow recovery in the Euro zone's number one economy is still in place. Industrial production rose a timid 0.2% from September, when it advanced 1.1%, according to the Economy Ministry. Measured on year-to-year basis, output rose 0.8% in the month under review, compared with a revised 0.1% growth recorded in the preceding month.
A separate report showed European investors' mood continued to improve in December, albeit still remained in the negative territory. The Sentix Investor Confidence Index for the Euro zone came in at -2.5 points in December, compared with the -11.9 recorded in November. Both the economic situation and the expectations for the next six months were evaluated more positively by the survey participants. The Euro bloc's improvement is attributed largely to the anticipations the European Central Bank will launch a large-scale asset-buying program soon.
Wednesday to bring no major news from Europe
As estimated, the middle of the current week is going to be rather calm in terms of fundamental data from Eurozone's countries. The majority of news will come from the US, Britain and Asian countries. French industrial output and employment change data will be released tomorrow, along with manufacturing production statistics from Italy and Greece. At the same time, this bunch of news is not likely to have a significant impact on the performance of the Euro.EUR/USD set for decline after confirmation of triangle pattern
The long-term outlook for the EUR/USD remains bearish, as the cross has been moving downwards since the beginning of July and on December 3 has eventually breached the triangle pattern to the south. Moreover, it has reached a new 2014 low at 1.2246. Any negative impetus will push the cross down below this important level, with a long-term goal at 1.2098 (monthly S3). At the same time, right now the pair is also limited by the long-term downtrend line around 1.2420 from the upside.Daily chart
On the short-term basis, the EUR/USD pair increased in value on Monday, reaching the monthly S1 at 1.2339. However, the pair closed the day below this important resistance level. Besides that, in course of the day the cross managed to set a new 2014 low at 1.2246. Right now the pair is considerably limited by the mentioned resistance, which is also strengthened by weekly PP; therefore, we would rather expect a movement to the south.
Hourly chart