The Ifo Business Climate Index for German trade and industry rose to 107.9 points in March from 106.8 points last month. The index reached its highest level since July 2014. Companies expressed far greater optimism about future business development. The German economy continues to expand.
Today's event: GfK German consumer climate.
Technical view:
The pair made a higher low on a daily basis for 8days now. But it faced strong parallel resistance at 1.1042. The pair managed to close above 20Dsma at the yesterday's session. Today, at the early Asian session, the euro was trading lower against the greenback. USD rebounded against the euro and the pair is trading below 1.1000. The intraday trend is turning to bearish based on hourly moving averages. Intraday resistance is seen at 1.0980 and support is likely to be found at 1.0945. We recommend fresh selling below 1.0940 with targets at 1.0900, 1.0880, 1.0770, 1.0750, and 1.0690. An intraday view still recommends buying with sl 1.0830. This is based on a purely technical view. However, I think the pair is unlikely to close above 1.1045 and bears will try to regain control. Hopefully, bulls' honeymoon is over. A daily close below 1.0770 shows that bulls are losing grip. Bulls must try to close above 1.1045. Bears must try to close below 1.0768. In case the price closes above 1.1045, bulls can challenge 1.1170 and 1.1500. We are bullish for EUR against GBP for now, but not against with USD. The above levels on a closing basis can change the current picture. Until then, 250 pips trading range will play a role. Weekly support is seen at 1.0768 and 1.0700. Bulls will have the upper hand until the pair closes above 1.0830.
Trade: selling below 1.0940, strong selling will emerge below 1.0880
Buying above 1.1050
Key technical levels of the euro against USD/JPY/CAD/GBP, and AUD
EUR/USD-Weekly mode favors buying with sl 1.0830. Intraday view favors bears.
EUR/JPY- Weekly mode favors buying with sl 130.00. Intraday view favors bears.
EUR/CAD. Weekly mode favors buying with sl 1.3630 with a likely target at 1.3800
EUR/GBP. Weekly mode favors buying with sl 0.7290 with a likely target at 0.7430 (buying above 0.7305 was advised on Monday)
EUR/AUD. buying with sl 1.3820 target 1.4150
We will re-analyze if the weekly trend changes. The euro has been trading like a mirror image against USD & JPY.
The material has been provided by InstaForex Company - www.instaforex.com
