EUR/USD rebounds from 1-week lows, back to 1.1750

EUR/USD trimmed losses during the last two hours and rose back above 1.1750. Earlier the pair dropped to 1.1735 after the release of US data, reaching the lowest level since October 9. 

Industrial production in the US rose 0.3% in September, in line with expectations while capacity utilization rose to 76.2% from 75.8%. Other report showed that the NAHB index (housing) rose to 68 above the 64 expected. Earlier, the export and import price indexes showed a gain of 0.8% and 0.7%, respectively.

US: Industrial production rose 0.3 percent in September

The data helped the US dollar remain near daily highs but then lost strength and pulled back. Still, the greenback holds in positive territory across the board. Despite what the US Dollar does, equity prices in the US continue to rise. The Dow Jones just reached 23,000 for the first time ever. 

From the lows, EUR/USD rebounded and it reached 1.1756. At the moment of writing was trading at 1.1750, down 40 pips for the day, headed toward the fourth daily decline in a row. The short-term tone continues to favor the downside. The bias could change if price rises on top of 1.1800. 

Levels to watch 

To the downside, immediate support is seen at daily lows at 1.1735, followed by 1.1717 (Oct 9 low) and 1.1695 (Oct 3 low). On the upside, resistance might lie at 1.1770 (20-hour moving average), 1.1795 and 1.1815/20 (Oct 16 high).