EUR/USD rebounds above 1.14, turns positive for the week

Broad USD weakness helps the pair recover weekly losses on Friday.
Ifo data shows that sentiment continues to deteriorate in Germany.
ECB recognizes the weakness of the recent data.

Eren Sengezer FXStreet

The EUR/USD pair, which fell to its lowest level in more than two months below 1.13 on Thursday after ECB President Draghi acknowledged the weaker growth momentum and increasing downside risks, staged a decisive recovery on Monday and gained nearly 100 pips on Friday. As of writing, the pair was trading at 1.1410, adding 0.9% on a daily basis. With today's upsurge, the pair turned positive for the week.

Earlier today, the data published by Germany's Ifo's Institue revealed that the headline German Business Climate Index fell to 99.1 in January from December's 101.0 reading and fell short of the analysts' estimate of 100.6. Moreover, the Current Economic Assessment Index edged down to 104.3 and the Expectations Index slumped to 94.2 to confirm the deteriorating sentiment in the euro area's biggest economy.

However, with the greenback failing to extend yesterday's rally and reversing its course on Friday, the pair shook off the negative impact of the disappointing Ifo report and posted decisive gains. The US Dollar Index in the early NA session slumped below the 96 mark for the first time in more than a week amid dovish Fed expectations and concerns over the ongoing government shutdown. At the moment, the index is down 0.7% on the day at 95.90.

Key Technical Levels

EUR/USD

Overview:
    Today Last Price: 1.141
    Today Daily change: 0.0102 pips
    Today Daily change %: 0.90%
    Today Daily Open: 1.1308
Trends:
    Daily SMA20: 1.142
    Daily SMA50: 1.139
    Daily SMA100: 1.1452
    Daily SMA200: 1.1584
Levels:
    Previous Daily High: 1.1393
    Previous Daily Low: 1.1289
    Previous Weekly High: 1.1491
    Previous Weekly Low: 1.1353
    Previous Monthly High: 1.1486
    Previous Monthly Low: 1.1269
    Daily Fibonacci 38.2%: 1.1329
    Daily Fibonacci 61.8%: 1.1353
    Daily Pivot Point S1: 1.1267
    Daily Pivot Point S2: 1.1227
    Daily Pivot Point S3: 1.1164
    Daily Pivot Point R1: 1.1371
    Daily Pivot Point R2: 1.1433
    Daily Pivot Point R3: 1.1474

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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