Euro at 1.30 versus Dollar - 8.5.2012

The single currency approached from above the key support against the dollar, settled at 1.3000. Yesterday the pair even touched the level 1.2954, falling to a 3 month low, before rising to 1.3060. Favorable industrial production figures from Germany today granted few support to the euro. According to the report seasonally adjusted measure increased in March by 2.8%, following a revised 0.3% drop in the previous month. Technically looking further downside movement may become possible in case the pair confirms breach below 1.3000 on a daily basis. At the same time MACD is also supporting negative outlook, although Stochastic has already reached overbought area.