The December industrial production data for Germany saw a larger than expected slump. Data from the Federal Statistics Office showed that industrial production was down 3.5% on a month over month basis in December.
This was down from a 1.2% increase from the month before. The data follows a weak factory orders report earlier in the week.
EUR/USD Falls to a 4-Month Low
The common currency touched down to the support level of 1.0952, marking a four-month low. Price action could now consolidate near this level, with a possibility that a rebound could occur.
The correction will, however, confine price action to the range of 1.1000 and 1.0952. A breakout from this range should determine the direction going forward.
