The Euro (EUR) inched higher against the US Dollar (USD) on Wednesday, increasing the price of EURUSD to more than 1.1550 following some key economic releases. The technical bias remains bearish because of a lower low in the recent downside move.
EUR/USD Technical Analysis
As of this writing, the pair is being traded around 1.1586. On the downside, a support can be noted near 1.1310, a key horizontal support ahead of 1.1209, the low of last major downside move and then 1.1049, the 50% fib level as demonstrated in the given above chart. The technical bias may turn bullish if the pair breaks the 1.2478 resistance level.
On the upside, a resistance can be noted around 1.1673, the 23.6% fib level ahead of 1.2456, a trendline resistance and then 1.2555, a major horizontal resistance area as demonstrated in the given above chart.
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 last few weeks, buying the EURUSD around current levels can proved to be a good decision in short to medium term.