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27 Jan 2014
EUR/USD eyes 1.3700 ahead of IFO
FXstreet.com (Edinburgh) - Market sentiment woke up tilted to the risk-on camp on Monday in Europe, briefly pushing the EUR/USD through 1.3700 the figure ahead of the German IFO indicator.
EUR/USD further upside on the cards?
Prior surveys expect the IFO to improve in all of its components during January, giving extra support to the EUR, which might in turn pave the way for a more convincing break above the 1.3700 handle. In light of the FOMC meeting ahead in the week, Senior Analyst Christin Tuxen at Danske Bank observed, “The lack of USD upside may suggest that markets are to a certain extent pricing the chance of a Fed reaction (more easing) should global growth end up taking a hit from a wider EM crisis; in contrast, an ECB reaction should possibly not be expected in such a scenario”.
EUR/USD levels to follow
As of writing the pair is up 0.14% at 1.3695 and a break above 1.3740 (high Jan.24) would target 1.3776 (2014 high Jan.2) en route to 1.3819 (high Dec.30). On the flip side, a the immediate support lines up at 1.3662 (daily cloud top) followed by 1.3645 (21-d MA) and finally 1.3610 (10-d MA).
EUR/USD further upside on the cards?
Prior surveys expect the IFO to improve in all of its components during January, giving extra support to the EUR, which might in turn pave the way for a more convincing break above the 1.3700 handle. In light of the FOMC meeting ahead in the week, Senior Analyst Christin Tuxen at Danske Bank observed, “The lack of USD upside may suggest that markets are to a certain extent pricing the chance of a Fed reaction (more easing) should global growth end up taking a hit from a wider EM crisis; in contrast, an ECB reaction should possibly not be expected in such a scenario”.
EUR/USD levels to follow
As of writing the pair is up 0.14% at 1.3695 and a break above 1.3740 (high Jan.24) would target 1.3776 (2014 high Jan.2) en route to 1.3819 (high Dec.30). On the flip side, a the immediate support lines up at 1.3662 (daily cloud top) followed by 1.3645 (21-d MA) and finally 1.3610 (10-d MA).