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25 Apr 2016
German Ifo preview: What to expect of EUR/USD?
EUR/USD holds firmer near the mid-point of 1.1250 levels, making a comeback after Friday’s slide amid broad based US dollar correction. Moreover, expectations of a better German Ifo print also provide fresh boost to the bulls.
Ifo to show renewed optimism over EU referendum
The headline Ifo Business Climate Index is expected to tick up to 107.0 in April, from the 106.7 booked last month. The Current Assessment sub-index is seen at 113.8, the same as the 113.8 booked a month ago, while the Ifo Expectations Index - indicating firms' projections for the next six months - is expected to edge up to 100.6 from the 100.0 registered in March.
The Surveys are expected to show improvement on the back of renewed optimism surrounding EU referendum, with the latest polls favouring remain camp. Moreover, improving German and Euro zone private sector activity combined with the EU finally sneaking out of deflationary conditions are likely to add to the upbeat sentiment.
EUR/USD Technical Levels
Haresh Menghani, Analyst at FXStreet explains, “Following a strong rejection from 1.1400 handle, the pair now seems to have found some support near 1.1220-15 area, marking 38.2% Fibonacci retracement level of 1.0830-1.1465 up-swing. However, further recovery from lower level might now confront immediate resistance near 1.1265-70 horizontal zone.”
“On the downside, traders would be eying 1.1220-15 immediate support area, which if breached should drag the pair towards testing 50-day SMA support that currently stands near 1.1185 level.”
Ifo to show renewed optimism over EU referendum
The headline Ifo Business Climate Index is expected to tick up to 107.0 in April, from the 106.7 booked last month. The Current Assessment sub-index is seen at 113.8, the same as the 113.8 booked a month ago, while the Ifo Expectations Index - indicating firms' projections for the next six months - is expected to edge up to 100.6 from the 100.0 registered in March.
The Surveys are expected to show improvement on the back of renewed optimism surrounding EU referendum, with the latest polls favouring remain camp. Moreover, improving German and Euro zone private sector activity combined with the EU finally sneaking out of deflationary conditions are likely to add to the upbeat sentiment.
EUR/USD Technical Levels
Haresh Menghani, Analyst at FXStreet explains, “Following a strong rejection from 1.1400 handle, the pair now seems to have found some support near 1.1220-15 area, marking 38.2% Fibonacci retracement level of 1.0830-1.1465 up-swing. However, further recovery from lower level might now confront immediate resistance near 1.1265-70 horizontal zone.”
“On the downside, traders would be eying 1.1220-15 immediate support area, which if breached should drag the pair towards testing 50-day SMA support that currently stands near 1.1185 level.”