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The Euro (EUR) stages a mild recovery on Monday, favored by a weaker US Dollar and a moderate risk-on sentiment. The pair, however, remains unable to stage a significant rebound after Friday’s reversal and remains at a short distance to the 1.0880 support area. data released on Monday showed that German business confidence deteriorated in December, following two consecutive improvements. The IFO Business Climate Index dropped unexpectedly in December, with the sentiment about the current economic situation and the near-term expectations posting lower levels than in the previous month.These figures come after the downbeat PMI figures seen late last week and the contracting (GDP) seen earlier this month, confirming the view of an upcoming economic slowdown.This scenario poses a serious challenge for the European Central Bank (ECB) and disputes the hawkish stance ECB President Christine defended on Thursday, following the bank’s monetary policy decision.
Daily digest market movers: Euro recovery attempts falter as Eurozone data disappoints
Technical Analysis: Euro corrects lower from 1.1010 resistance areaThe Euro was rejected again at the 1.1010 resistance area, and the pair remains unable to put a significant distance from the 1.0900-1.0880 support area despite Monday’s moderate risk-on markets.The broader trend remains positive, although the pair seems to be losing momentum, with the lack of upside momentum suggesting that further correction is on the cards.On the downside, a break of the December 14 low at 1.0880 and the 4-hour 100 Simple Moving Average (SMA) at 1.0870 is likely to increase bearish pressure towards 1.0825 on the way to 1.0730 lows.
On the upside, should extend beyond intra-day highs at 1.0930 to attempt a retest of the mentioned 1.1010 resistance. Above here, the next targets would be the August high at 1.1060 and the July 24 and 27 high at 1.1150.More By This Author:Gold Price Forecast: Loses Ground To $2,020, US Housing Data Eyed German IFO Business Climate Index Declines To 86.4 In December Vs. 87.8 ExpectedNZD/USD Extends Its Upside Above 0.6200, Focus On New Zealand Trade Data
