EUR/USD Trades Steady Ahead of German Ifo Business Climate
On Monday, the Eurozone consumer price inflation fell more than initially estimated, adding further selling pressure on the single currency. The consumer price index grew 1.9%, which was slower than the 2% estimate on November 30.
Back in October, the CPI held at 2.2%, which was the highest since December 2012. Hence, the current 1.9% isn’t showing a sign of improvement in the Eurozone, adding sentiments that ECB won’t hike the rates until summer 2019.
For now, the investor focus shifts to German Ifo Business Climate which is due at 9:00 (GMT). The figure rarely drives volatility in the market, yet investors will be monitoring it to capture any surprise.
The technical side of the EUR/USD hasn’t changed much due to lack of trading volume. It continues to trade below a strong resistance area of $1.1360. The bullish breakout of this level can lead prices toward double top level of $1.1380. While the direct pair can stay bearish below $1.1315.
Support Resistance
1.1317 1.1368
1.1285 1.1389
1.1234 1.144
Key Trading Level: 1.1337
EUR/USD – Trade Plan
The idea is to stay bearish below $1.1380 with a stop loss above $1.1410 and take profit at $1.1310. While buying is preferred above $1.1385.
Good luck!
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