The Euro (EUR) slid down against the US Dollar (USD) on Wednesday, decreasing the price of EURUSD to less than 1.1600 following some key economic releases. The technical bias may turn bullish because of a higher high in the recent upside move.
EUR/USD Technical Analysis
As of this writing, the pair is being traded around 1.1566. Since the price is decreasing, a support can be noted around 1.1497, the 61.8% Fib level support ahead of 1.1451, the trend line support and then 1.1299, the major horizontal support level as demonstrated in the given below chart.
On the upside, a resistance can be noted around 1.1618, the 38.2% Fib level resistance which is likely to prevent the price from passing above this level. Another resistance level may come around 1.1693, the major horizontal resistance level and then 1.1814, another major horizontal resistance levels as demonstrated in the given above chart. The technical bias may remain bearish as long as 1.1618, the major horizontal resistance level remains intact.
Germany IFO Business Data
The Germany economy will likely grow by 1.8 or 1.9 percent this year, an economist for the influential Ifo institute said on Monday after its monthly business survey showed sentiment rising in August.
Ifo had previously forecast 2018 growth of 1.8 percent.
Ifo economist Klaus Wohlrabe said the strong domestic situation in Europe’s largest economy was outshining the uncertainty caused by Britain’s looming departure from the European Union and the Turkish lira crisis. He said export expectations had risen significantly after dropping in July.
Trade Idea
Considering the overall price behavior of the pair over the last few weeks, selling the EURUSD around current levels can prove to be a good decision in short to medium term.