EUR/USD: Limited bullish potential

EU Industrial Production fell in December, limiting the bullish potential of the EUR. Meanwhile, EUR/USD is neutral-to-bearish in the short-term, according to Valeria Bednarik from FXStreet.

Key quotes

“The EUR/USD pair hovers around 1.0910 for a second consecutive day, meeting sellers in the 1.0920 price zone. EU data came in worse-than-anticipated, adding pressure on the Euro. December Industrial Production was down by 2.1% monthly basis, and by 4.1% when compared to a year earlier.”

“The US published MBA Mortgage Applications for the week ended February 7, which were up by 1.1%, after advancing 5.0% in the previous week.”

“In the 4-hour chart, EUR/USD continues to develop below firmly bearish moving averages, with the 20 SMA at around 1.0930. A critical support level comes at 1.0878, the low from 2019.”