industrial production increased by 7.3% while retail sales rose by 4.3%.

The market will see lower volume today due to the absence of US investors since the country will be celebrating Martin Luther King day. Nonetheless, there will be several key events to watch, including a speech by Governor Andrew Bailey of the Bank of England (BOE). In his speech, he will likely address the issue of negative rates as the economy continues to deteriorate. In Japan, the bureau of statistics will publish its preliminary industrial production and capacity utilization. In Italy, we will receive the latest CPI data.

EUR/USD

The EUR/USD is trading at 1.2082, which is significantly lower than this year’s high of 1.2350. It is also slightly higher than the intraday low of 1.2065. Still, the price is slightly below the two moving averages and above the 38.2% Fibonacci retracement. It also had a bearish breakout last week. Therefore, the trend will likely remain bearish, with the next key support being the 50% retracement at 1.1947.

AUD/USD

The AUD/USD pair is little changed today after mixed economic data from China. The pair is trading at 0.7700, which is below the year-to-date high of 0.7780. On the four-hour chart, the 28-day and 14-day moving averages have made a bearish crossover. Also, the Relative Strength Index (RSI) has continued to decline while the pair has formed a head and shoulders pattern. Therefore, the pair will likely continue falling as bears target the next support at 0.7650.

GBP/USD

The GBP/USD pair is little changed today ahead of Andrew Bailey’s speech. It is still hovering near the highest level since April 2018. On the daily chart, it is between the ascending channel. It is slightly higher than the 25-day and 15-day moving average. Therefore, this week, the pair may resume the downward trend as bears target the lower side of the channel.