EUR/USD to struggle to extend its advance on weak German Ifo survey

Although EUR/USD seems to have steadied above 1.10, it could find it difficult to continue to push higher in case the data from Germany highlight the negative impact of the Russia-Ukraine conflict on business sentiment, FXStreet’s Eren Sengezer reports.

German Ifo survey could derail euro's recovery

“The Ifo Institute is expected to announce a deterioration in German business confidence. The Expectations Index is forecast to decline to 92 in March from 99.2 in February and the Current Assessment Index is expected to fall to 96.5 from 98.6. In case these data come in worse than analysts' estimate, the common currency could come under renewed selling pressure and vice versa.”

“1.1040 (Fibonacci 50% retracement of the latest downtrend) aligns as key resistance on the upside. In case this level turns into support, the pair could target 1.1080 (Fibonacci 61.8% retracement) and 1.11 (psychological level).”

“A four-hour close below 1.10 (psychological level, Fibonacci 38.2% retracement, 100-period SMA) could open the door for an extended slide toward 1.0960 (static level) and 1.0940 (Fibonacci 23.6% retracement).”