EUR/USD turns positive near 1.2290 post-IFO

German IFO came in below expectations for the current month.
Spot looks to gather traction to the 1.2290/1.2300 region.
ECB minutes, Fedspeak next of relevance later in the day.

Pablo Piovano FXStreet

EUR/USD is now looking to extend the rebound from daily lows and is testing the upper end of the range in the 1.2280/90 band in spite of the lower-than-expected results from German releases.

EUR/USD bid after German data, eyes on ECB

The pair stays in the area of 1.2280/90 after the German IFO series came in below initial estimates for the month of February. In fact, Business Expectations (105.4), Current Assessment (126.3) and Business Climate (115.4) all missed consensus today and dropped from January’s readings.

In the meantime, some selling bias is surrounding the buck today, therefore allowing spot to attempt a bounce to higher levels with gains so far capped by the proximity of the 1.2390 level.

On another direction, EUR will be in centre stage later today as the ECB will release its minutes from the January meeting. The focus of attention will be, as usual, on the members’ views on a potential change in the forward guidance.

Across the pond, weekly initial claims area due along with speeches by New York Fed and permanent voter W.Dudley (centrist), Dallas Fed R.Kaplan (non voter, hawkish) and Atlanta Fed R.Bostic (voter, centrist).

EUR/USD levels to watch

At the moment, the pair is up 0.02% at 1.2285 and a breakout of 1.2353 (10-day sma) would target 1.2371 (21-day sma) en route to 1.2537 (high Jan.25). On the other hand, the next support emerged at 1.2206 (low Feb.9) followed by 1.2167 (50% Fibo of 2014-2017 drop) and finally 1.2165 (low Jan.18).

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Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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