Euro Nervous against the USD Ahead of German IFO Index
Aayush Jindal
Key Highlights
Euro gained this past week against the US dollar and it looks like it might continue to trade higher.
German business sentiment index will be released by the CESifo Group, which is expected to register a rise from the last reading of 106.7 to 107.7.
In the US, the Existing Home Sales will be released by the National Association of Realtors which is forecasted to register a reading of 5.03M in January 2015.
Swing support in EURUSD can be seen around 1.1350 where buyers might step in.
German IFO Business Climate IndexToday during the London session, as the Germany IFO business sentiment index will be released by the CESifo Group. The forecast is slated for an increase from the last reading of 106.7 to 107.7 in January 2015, compared to the preceding month.Furthermore, the German IFO Expectations and Current Assessment data will also be published. Both are expected to rise by one point to 103 and 112.7 respectively. Let us see how the outcome shapes and whether the expectation is fulfilled or not. There is no doubt that the recent QE from the ECB has fueled a ray of hope in investor’s sentiment. So, there is a chance of Germany IFO business sentiment index staying on the positive side for this past month.Technical AnalysisThe Euro fell recently towards the 1.1280 support area this past week against the US dollar, but later managed to hold the ground traded back higher. The upside reaction from the mentioned level was very sharp, which ignited more than 80 pips move. There is a bearish trend line on the hourly chart, which is acting as a hurdle for the pair.However, one positive point to note is that the EURUSD pair is sitting well above the 100 and 200 hour moving averages. So, if the pair corrects lower from the current levels, then initially it might find support around the 200 hour MA followed by 50% fib retracement level of the last leg from the 1.1280 low to 1.1430 high.US Manufacturing PMILater today during the NY session, the Existing Home Sales will be released by the National Association of Realtors. The forecast is slated for a reading of 5.03M in January 2015 in terms of the monthly change, which is a bit lower than the last reading of 5.04M.
However, one positive point to note is that the EURUSD pair is sitting well above the 100 and 200 hour moving averages. So, if the pair corrects lower from the current levels, then initially it might find support around the 200 hour MA followed by 50% fib retracement level of the last leg from the 1.1280 low to 1.1430 high.US Manufacturing PMILater today during the NY session, the Existing Home Sales will be released by the National Association of Realtors. The forecast is slated for a reading of 5.03M in January 2015 in terms of the monthly change, which is a bit lower than the last reading of 5.04M.
However, one positive point to note is that the EURUSD pair is sitting well above the 100 and 200 hour moving averages. So, if the pair corrects lower from the current levels, then initially it might find support around the 200 hour MA followed by 50% fib retracement level of the last leg from the 1.1280 low to 1.1430 high.US Manufacturing PMILater today during the NY session, the Existing Home Sales will be released by the National Association of Realtors. The forecast is slated for a reading of 5.03M in January 2015 in terms of the monthly change, which is a bit lower than the last reading of 5.04M.