23 May 2014
EUR/USD dips below 1.3630 on IFO
FXStreet (Edinburgh) - The weakness is now intensifying around the shared currency, dragging the EUR/USD to test lows in the 1.3630/25 band.
EUR/USD weaker post-IFO
The pair is now trading in levels last seen in early February around 1.3630 after the German IFO came in below expectations for the month of May. All of the components not only missed forecasts but they have also worsened April’s readings. Previously, the German GDP for the first quarter expanded 0.8% QoQ and 2.5% on a yearly basis, bettering previous estimates, although spot remained indifferent. “In line with expectations, EUR struggle to move lower yesterday. The weak undertone suggests that we will likely see a similar price action today wherein EUR is expected to continue to grind lower. Expect any rebound to stay below 1.3685 for a move lower to test the recent low at 1.3635”, noted Quek Ser Leang, Market Strategist at UOB Group.
EUR/USD levels to watch
As of writing the pair is losing 0.18% at 1.3630 with the next support at 1.3585 (low Feb.13) ahead of 1.3563 (low Feb.12) and finally 1.3552 (low Feb.7). On the flip side, a breakout of 1.3688 (high May 22) would target 1.3705 (Tenkan Sen) en route to 1.3723 (high May 21).
EUR/USD weaker post-IFO
The pair is now trading in levels last seen in early February around 1.3630 after the German IFO came in below expectations for the month of May. All of the components not only missed forecasts but they have also worsened April’s readings. Previously, the German GDP for the first quarter expanded 0.8% QoQ and 2.5% on a yearly basis, bettering previous estimates, although spot remained indifferent. “In line with expectations, EUR struggle to move lower yesterday. The weak undertone suggests that we will likely see a similar price action today wherein EUR is expected to continue to grind lower. Expect any rebound to stay below 1.3685 for a move lower to test the recent low at 1.3635”, noted Quek Ser Leang, Market Strategist at UOB Group.
EUR/USD levels to watch
As of writing the pair is losing 0.18% at 1.3630 with the next support at 1.3585 (low Feb.13) ahead of 1.3563 (low Feb.12) and finally 1.3552 (low Feb.7). On the flip side, a breakout of 1.3688 (high May 22) would target 1.3705 (Tenkan Sen) en route to 1.3723 (high May 21).