24 Apr 2014
EUR/USD tests highs on better IFO
FXStreet (Edinburgh) - The single currency is now trading on a firmer tone, lifting the EUR/USD back to the 1.3840 area and posting fresh session highs at the same time.
EUR/USD propped up by IFO
Auspicious German IFO results boosted the pair to session highs, with Expectations (107.3) and Business Climate (111.2) surpassing expectations at 105.8 and 110.5, respectively for the month of April. Next on tap in the euro area will be the speech by ECB’s Mario Draghi, with market participants looking for clues and mentions of the exchange rate. In light of the recent data, Analyst Carsten Brzesky at ING Bank NV, commented, “However, despite today’s surprisingly strong Ifo and the expected growth acceleration of the German economy in the first quarter, it would be foolish to turn a blind eye to possible downside risks for the economy. With the Ukraine crisis, Chinese uncertainties and emerging markets slowing down, more and more gusts of wind, particularly from the East, could easily disturb the current spring fever on the Eurozone’s island of happiness”.
EUR/USD levels to watch
As of writing the pair is advancing 0.15% at 1.3837 with the immediate resistance at 1.3855 (high Apr.23) ahead of 1.3865 (high Apr.17) and then 1.3906 (high Apr.11). On the flip side, a breakdown of 1.3798 (low Apr.23) would target 1.3796 (21-d MA) en route to 1.3785 (low Apr.22).
EUR/USD propped up by IFO
Auspicious German IFO results boosted the pair to session highs, with Expectations (107.3) and Business Climate (111.2) surpassing expectations at 105.8 and 110.5, respectively for the month of April. Next on tap in the euro area will be the speech by ECB’s Mario Draghi, with market participants looking for clues and mentions of the exchange rate. In light of the recent data, Analyst Carsten Brzesky at ING Bank NV, commented, “However, despite today’s surprisingly strong Ifo and the expected growth acceleration of the German economy in the first quarter, it would be foolish to turn a blind eye to possible downside risks for the economy. With the Ukraine crisis, Chinese uncertainties and emerging markets slowing down, more and more gusts of wind, particularly from the East, could easily disturb the current spring fever on the Eurozone’s island of happiness”.
EUR/USD levels to watch
As of writing the pair is advancing 0.15% at 1.3837 with the immediate resistance at 1.3855 (high Apr.23) ahead of 1.3865 (high Apr.17) and then 1.3906 (high Apr.11). On the flip side, a breakdown of 1.3798 (low Apr.23) would target 1.3796 (21-d MA) en route to 1.3785 (low Apr.22).