The EUR/USD pair is trading at the 1.2186 level and holding above a support level of 1.2170. The pair is trading with a bearish bias, on the back of a stronger dollar, as the EUR/USD has slipped to trade at the 1.2176 level. On the data front, at 12:00 GMT, the German Industrial Production for November came in, showing a rise to 0.9% against the projected 0.7%, which boosted the Euro and capped any further losses in the EUR/USD pair. For November, the German Trade Balance showed a surplus of 16.4B against the expectations of 18.5B, which weighed on the Euro and added further to the losses in the EUR/USD pair.

At 12:45 GMT, the French Consumer Spending figures for November were released, indicating a drop to -18.9%, against the predicted -15.8%, which weighed on the Euro and added to the losses in the EUR/USD pair. Industrial Production in France dropped to -0.9% against the forecast of -1.0%, which lent support to the Euro. In November, the French Trade Balance showed a deficit of -3.6B against the expected -4.9B, also supporting the Euro. At 15:00 GMT, the Italian Monthly Unemployment Rate numbers came in, showing a drop to 8.9% against the anticipated 10.0%, which was also good for the Euro. The Unemployment Rate from the Eurozone as a whole also dropped, coming in at 8.3%, against the projection of 8.5%, bolstering the Euro and capping any further losses for the EUR/USD pair.

Furthermore, Europe slid further into crisis on Friday, as multiple countries faced overwhelming numbers of coronavirus cases and deaths. The UK reported 1,325 coronavirus-related deaths on Friday, which was its highest ever daily increase in deaths. The number of cases in London has increased rapidly, with an increase of patients being treated in UK hospitals by one-third, compared to the peak of the pandemic last April. The rising number of coronavirus cases in Europe also put pressure on the local currency, the Euro, adding to the losses in the EUR/USD pair on Friday.

The EUR/USD pair may now find support at the 1.2176 level, and violation of this level may trigger a selling trend until the next support level of 1.2132. On the higher side, the pair may face resistance at the 1.2213 level. The RSI and MACD suggest strong odds of selling, and this may drive further selling bias in the pair, but ahead of this, the pair could bounce off a bit on the back of retracement, until the 1.2176 level. Let’s consider taking selling trades below this level today. Good luck!