The leading indicators of economic performance in Germany, the leading economy of the Eurozone, continue to decline. Industrial production contracted by 0.8%, while retail sales fell by 1.3%, according to the data for August reported by the Federal Statistical Office (Destatis) today. Thus, while the recession concerns in the Eurozone towards the third quarter remained alive, the euro also tended to give back its gains. In addition, the cautious mood in the markets before the nonfarm payrolls set from the US side and the hawkish statements of the FED members are also put pressure on the parity. Technically, in the EURUSD parity, which signals downward movements by breaking the rising minor channel, a pullback to the 0.9700 support can be observed, if it can be suppressed behind the 0.9755 level. In the possible upside scenario, 0.9950 and psychological 1.0000 resistance may be in question.

Support: 0.9755 – 0.9700 – 0.9660
Resistance: 0.9950 – 1.0000 – 1.0045