EUR/USD, which has made very nice gains in the past few days, seriously extended it’s gains when the German Ifo Business Climate at 9:00 GMT. The Euro broke resistance levels of 1.3270, and broke above 1.33, for the first time in over a week.
German Ifo Business Climate scored 83 points, better than 81 that was expected. An improved business climate in Europe biggest economy is a very important factor for the Euro. Germany just lost its position as the world’s third economy a few weeks ago, and this figure gives renewed power to the German economy, and the European economy in general.
EUR/USD is going up despite another European figure, the Current Account which showed a deficit of 16 billion Euros. This was far worse than -8 billion that was predicted by economists.
EUR/USD is at 1.3318 at the time of writing. Looking at the forex charts, the next resistance is seen at 1.3376, which was the top value of EUR/USD on January 19th, just before the dollar rally that began with the inauguration of Barack Obama.
There’s a lot more data today, so this trend can stop either at the technical resistance line of 1.3376, or earlier, if good data comes out of the US.
Update: The Euro rally didn’t hold – EUR/USD is went down, and is now (11:26 GMT) back at 1.3230.
