Forex: EUR/USD rallies back to resistance after IFO surprise

FXstreet.com (Barcelona) - The surprising results of the IFO survey in Germany has brought the EUR/USD back to the 1.2900 ground after the tumble to 1.2875 as technical reaction from hitting the 55-day MA, at 1.2910.

Business climate in Germany rose from 100.0 to 101.4 in November, while analysts expected data to ease to 99.5. Current assessment jumped from 107.2 to 108.1 (consensus of 106.3) and expectations improved from 93.2 to 95.2. The solid figures against a gloomy consensus triggered a rally to test the 55-day moving average again. The pair has gone up to 1.2913 high, for now.

“Bullish tone on lower timeframes studies remains strong, however, extended conditions on both, 1 and 4h charts, may signal hesitation at strong 1.2900/10 resistance, where 50% retracement / daily 55 day MA and upper 20 day Bollinger band lie”, wrote Windsor Brokers analyst Slobodan Drvenica, pointing to next target at 1.2955, Fib 61.8%, then 1.2984, daily Ichimoku cloud top, for eventual attack at psychological 1.3000 barrier.

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