• The EUR /USD pair declined on Tuesday as the euro fell on nervousness ahead of the French elections and weak German industry data.
   
• Weaker output in manufacturing and construction drove the biggest monthly drop in German industrial production in nearly eight years in December.
   
• Industrial output fell by 3.0 percent on the month, Tuesday's data showed. This was weaker than prediction and far below the consensus forecast for a rise of 0.3 percent.
   
• The ongoing weakness is set to continue for this pair as the resistance level at 1.0713 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
   
• To the upside, the immediate resistance can be seen at 1.0686, a break above this level would expose the pair to next resistance level at 1.0713.
   
• To the downside, immediate support can be seen at 1.0655, a break below at this level will open the door towards next level at 1.0610.
  
  Resistance Levels
  
  R1:  1.0686 (Session high)            
  
  R2: 1.0713 (61.8% Retracement level)    
  
  R3: 1.0755 (Feb 6th high)
  
  Support Levels
  
  S1: 1.0655 (Daily lows)                   
  
  S2: 1.0610 (38.2% Retracement level)
  
  S3: 1.0547 (23.6% Retracement level)