Key Points
- The Euro remained under a lot of bearish pressure vs the US Dollar and traded below 1.0540.
- There is a crucial bearish trend line with resistance at 1.0550 formed on the hourly chart.
- Today, the German IFO business sentiment index for Feb 2017 was released by the CESifo Group.
- The result was better than the forecast, as there was a rise from 109.8 to 111 in Feb 2017.
EURUSD Technical Analysis
The Euro made a solid downside move this week against the US Dollar, and traded as low as 1.0498. At the moment, the EURUSD pair is attempting a recovery with an initial resistance near the 23.6% Fib retracement level of the last decline from the 1.0631 high to 1.0498 low.
However, the most important resistance is near a crucial bearish trend line with resistance at 1.0550 on the hourly chart.
The same trend line resistance also coincides with the 38.2% Fib retracement level of the last decline from the 1.0631 high to 1.0498 low and the 21 hourly simple moving average.
German IFO Business Sentiment Index
Today in the Euro Zone, the German IFO business sentiment index for Feb 2017 was released by the CESifo Group. The market was expecting a decline from the last reading of 109.8 to 109.6 in Feb 2017.
However, the result was better than the forecast, as there was a rise from 109.8 to 111 in Feb 2017. The report added that “Assessments of the current business situation reached their highest level since August 2011. Companies also expressed greater optimism about the months ahead. After making a cautious start to the year, the German economy is back on track”.
Overall, the Euro may recover a few pips in the short term, but may face sellers near the trend line resistance at 1.0550 vs the US Dollar.
