17 Dec 2015
EUR/USD: Attempting a rise despite dismal German IFO
FXStreet (Mumbai) - The EUR/USD is attempting to break higher from the narrow range of 1.0875-1.0750 even though the German IFO readings missed estimates.
Trades around 1.0870
The common currency is trading in the sideways manner in a narrow range of 1.0875-1.0850 since the early European session and is aiming higher as the traders turned a blind eye towards the IFO business climate index, which missed estimate to print at 108.7. The current assessment and expectations index also missed estimates.
Moreover, the currency pair risks moving higher despite weak data and the uptick in the stock markets on account of the unwinding/profit taking of the overcrowded USD long trade ahead of the weekend.
Ahead in the day, the weekly US jobless claims could influence the pair. Portfolio adjustment ahead of the year end could affect demand for the funding currency EUR as well.
EUR/USD Technical Levels
At 1.0875, the pair faces immediate resistance at 1.0886 (hourly 200-MA) ahead of the psychological level of 1.09. A break higher would open doors for a rally to 1.0923 (50-DMA). On the other hand, a break below 1.0832 (daily low) would expose 1.0748 (23.6% of 1.1495-1.0517).
Trades around 1.0870
The common currency is trading in the sideways manner in a narrow range of 1.0875-1.0850 since the early European session and is aiming higher as the traders turned a blind eye towards the IFO business climate index, which missed estimate to print at 108.7. The current assessment and expectations index also missed estimates.
Moreover, the currency pair risks moving higher despite weak data and the uptick in the stock markets on account of the unwinding/profit taking of the overcrowded USD long trade ahead of the weekend.
Ahead in the day, the weekly US jobless claims could influence the pair. Portfolio adjustment ahead of the year end could affect demand for the funding currency EUR as well.
EUR/USD Technical Levels
At 1.0875, the pair faces immediate resistance at 1.0886 (hourly 200-MA) ahead of the psychological level of 1.09. A break higher would open doors for a rally to 1.0923 (50-DMA). On the other hand, a break below 1.0832 (daily low) would expose 1.0748 (23.6% of 1.1495-1.0517).