EUR/USD stalls the upside near 1.1380 post-German IFO

Benefits from a broadly weaker USD amid expectations of dovish Fed.
But upside capped by downbeat German IFO survey, focus shifts to US housing data.

Dhwani Mehta FXStreet

The EUR/USD pair stalled its bounce near 1.1380 region, as the EUR bulls were disappointed by a bigger-than-expected drop in the German IFO business climax index. The headline German Ifo business climate index came in at 101.0 for December, weaker than last month's 102.0 and missing consensus estimates pointing to a reading of 101.8.

Despite the latest leg down, the spot manages to find support from the ongoing broad-based US dollar weakness amid a sell-off in Treasury yields, as markets have already priced-in a dovish Fed rate hike, in light of mounting global growth concerns, worries on yield-curve inversion and lower inflationary pressures.

The USD index stalled its Asian bounce and fell back in the red, now trading near 96.90 levels, down -0.18% on the day while the 10-year Treasury yields trade at the lowest levels since August 2018 at 2.825%.

Meanwhile, markets are hopeful that the European Union (EU) may approve the revised Italian budget soon, which eventually lends support to the common currency, as the focus now shifts towards the US housing data for fresh trading opportunities ahead of the key FOMC decision due tomorrow.

EUR/USD Technical Levels

EUR/USD

Overview:
    Today Last Price: 1.1373
    Today Daily change: 27 pips
    Today Daily change %: 0.238%
    Today Daily Open: 1.1346
Trends:
    Previous Daily SMA20: 1.1354
    Previous Daily SMA50: 1.1396
    Previous Daily SMA100: 1.1494
    Previous Daily SMA200: 1.1712
Levels:
    Previous Daily High: 1.136
    Previous Daily Low: 1.1302
    Previous Weekly High: 1.1444
    Previous Weekly Low: 1.1269
    Previous Monthly High: 1.15
    Previous Monthly Low: 1.1216
    Previous Daily Fibonacci 38.2%: 1.1337
    Previous Daily Fibonacci 61.8%: 1.1324
    Previous Daily Pivot Point S1: 1.1312
    Previous Daily Pivot Point S2: 1.1278
    Previous Daily Pivot Point S3: 1.1254
    Previous Daily Pivot Point R1: 1.1369
    Previous Daily Pivot Point R2: 1.1393
    Previous Daily Pivot Point R3: 1.1427

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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