EUR/USD: good news from Germany
German Ifo business climate rose this month to 105.7 (forecast: 104.6; previous: 104.4). EUR/USD approached $1.3000.
We are still looking to sell euro on further recovery. Only above $1.3000 (psychological level, 50% Fibo) euro will get chance to return to $1.3030 and $1.3050. There’s a 200-day MA at $1.3010. Support is at $1.2900 and $1.2860.
Rabobank underlines that despite the recent improvement, euro zone’s PMIs released yesterday still came below 50, so “there’s no particularly strong message in these data.” Comments from the European officials weren’t inspiring as well. The ECB Governing Council member Nowotny said that he does not expect any economic improvement in the short-term.
Today’s trading will likely remain volatile. Market players are looking forward to the release of US durable goods orders. If the forecasters are right and the indicator improves after dismal March readings, USD will gain. Before that German Bundesbank President Weidmann may bring some movement to the market.
Chart. H4 EUR/USD