EUR/USD struck within falling channel, to hold above 1.3157-1.2970 region

EUR/USD is facing strong resistance within a falling channel amid mixed data from Germany on Wednesday and as worries about the region's ability to avert spreading of the debt crisis remained.

At 12:53 GMT, the pair was at 1.3212, off an intra-day low of 1.3179 and from its previous close of 1.3259. With no key data due from the US through the rest of the day, the pair is likely to hold above the 1.3157-1.2970 support region.

Below that, EUR/USD will have a strong support at 1.2885 before entering the key 1.2586-1.2465 region, a break below which could take the pair to its early June low of 1.1875.

Data from Germany showed that industrial production rose 11.7 percent year0over-year in October against a market consensus of 10 percent and sharply above previous month's 7.9 percent.

On a monthly basis, the industrial output stood at 2.9 percent, beating market expectation of a 1 percent rise and compared with a 0.8 percent fall in September.

October trade data was, however, disappointing with the surplus coming in at 14.4 billion euros from 15.4 billion euros in September and below the street number of 15.1 billion euros.

North Korea's suspected military drill earlier in the day in Asia was a reason for the greenback's early rise. The buck was also supported by a view that Obama administration's intention to extend tax-cuts within the economy would help it shore up.