EUR/USD gained some ground despite the disappointing Industrial Production report from Germany. The report showed that Industrial Production decreased by -1.1% month-over-month in July, compared to analyst forecast of +0.1%.

Traders also focused on the results of elections in Germany’s Saxony-Anhalt, which ended in a massive win for the anti-immigration Alternative for Germany. The AfD party reached its best result ever, raising worries about its potential success at a federal level.

AfD’s victory in Saxony-Anhalt is a big deal for Germany’s political scene, but I do not think that it will have a material impact on the dynamics of the European currency in the near term. That said, political shifts in Europe are always worth watching.

In case EUR/USD stays above the 1.1615 level, it will head towards the next resistance level, which is located in the 1.1685 – 1.1700 range.

GBP/USD Tests Resistance At 1.3550 – 1.3565