24 Jun 2013
EUR/USD stable on IFO numbers in line
FXstreet.com (London) - EUR/USD is steady on the release of an IFO number, which came pretty much in line with expectations for Germany.
German IFO – Business Climate (June) came in at 105.9 vrs consensus 105.7. The IFO - Current Assessment (Jun) came in at 109.4, slightly down on consensus 109.5 and finally the IFO -Expectations (Jun) arrived at 102.5, slightly up vrs 102.00 consensus. The pair are trading slightly above the figure still after the release around 1.3105. EUR/USD had opened in the European markets this week 100 pips lower below 1.3100 printing a low of 1.3079, suffering from a broad based rise in the US dollar. The main focus today will be on that German IFO number without their being much in the way in focus, except now for some second tier data that arrives in the afternoon for the US economy in the form of of Chicago Fed National Activity Index (May) and Dallas Fed Manufacturing Business Index (June).
EUR/USD Bearish technicals
Saeed Amen, strategist at Nomura said technicals are bearish for this week. They keep their bearish view. He said RSI is still moving lower, suggesting downward momentum is likely. With bandwidth falling, range-bound price action seems likely. Hence, he thinks a further retracement to the bottom of the range is reasonable. Their target is 1.3080 (55D SMA and 200D SMA). Gareth Berry at UBS now sees important support at 1.2797 and key resistance is at 1.3254 ahead of 1.3417.
German IFO – Business Climate (June) came in at 105.9 vrs consensus 105.7. The IFO - Current Assessment (Jun) came in at 109.4, slightly down on consensus 109.5 and finally the IFO -Expectations (Jun) arrived at 102.5, slightly up vrs 102.00 consensus. The pair are trading slightly above the figure still after the release around 1.3105. EUR/USD had opened in the European markets this week 100 pips lower below 1.3100 printing a low of 1.3079, suffering from a broad based rise in the US dollar. The main focus today will be on that German IFO number without their being much in the way in focus, except now for some second tier data that arrives in the afternoon for the US economy in the form of of Chicago Fed National Activity Index (May) and Dallas Fed Manufacturing Business Index (June).
EUR/USD Bearish technicals
Saeed Amen, strategist at Nomura said technicals are bearish for this week. They keep their bearish view. He said RSI is still moving lower, suggesting downward momentum is likely. With bandwidth falling, range-bound price action seems likely. Hence, he thinks a further retracement to the bottom of the range is reasonable. Their target is 1.3080 (55D SMA and 200D SMA). Gareth Berry at UBS now sees important support at 1.2797 and key resistance is at 1.3254 ahead of 1.3417.