EUR/USD outlook: Euro loses traction after weaker than expected German Ifo data
|EUR/USD
The Euro fell to the session low in European trading on Monday, down over 40 pips, deflated by weaker than expected German Ifo data, which dropped to the lowest since April in October.
Fresh weakness hit the floor of multi-day congestion (1.1620) increasing the risk of reversal after recovery from 1.1524 low was repeatedly rejected under key Fibo barrier at 1.1671 (38.2% of 1.1909/1.1524 fall).
Mixed daily studies (10/20DMA bull-cross/momentum still in positive territory conflict falling 30/55DMA’s/RSI and stochastic heading south) lack a clear direction signal for now.
Close below 1.1620 would generate an initial negative signal which would require confirmation on the return and close below 20DMA (1.1599) which would increase the risk of retesting key support at 1.1562 (weekly cloud base).
On the other side, an eventual close above falling 30DMA (1.1646) which capped the action during the last week, would ease downside risk, but a sustained break of 1.1671 Fibo level would signal bullish continuation.
Traders eye ECB meeting on Thursday, expecting more hawkish tones from the central bank regarding the possibilities of tapering start and possible earlier than an expected rate hike.
Res: 1.1646; 1.1671; 1.1707; 1.1716.
Sup: 1.1615; 1.1599; 1.1571; 1.1562.
Interested in EUR/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.