FXStreet – The positive momentum of the EUR/USD in this week unabated, and so was a new multi-month high to 1,1270 formed, whereupon there is a slight downward correction came.
EUR/USD bids after IFO
The IFO business climate index in Germany improved in may, 114,6, which is better than the forecast of EUR 113.1. The current assessment and the business prospects were cut off at 123.2 and 106,5 also better than the forecasts of 121.2 and 105,4.
Add to that the persistent selling pressure against the Greenback, which allows the Pair to rise and the critical 1,1300 getting closer and closer.
The US Dollar Index, which represents the strength of the USD vs. its 6 most important rivals, is testing the 6-month lows to 96,70, after the initial optimism is gone.
• US Dollar finds support in the vicinity of 97,00
The PMI results out of France and Germany and in may at 54 and 59.4, while the Euro zone reading section 57.0 as expected. The GDP of Germany increased from January to March compared with the previous quarter by 0.6%.
To expect us from the US, the Markit manufacturing PMI, the sales of new real estate and the speech by Minneapolis Fed N. Kashkari (voter, dovish).
EUR/USD significant levels
Currently, the days income is 0.19 % in the case of 1,1258 and the next Resistances lie at 1,1267 (2017 High 23. May), 1,1300 (High-9. November 2016) and 1,1367 (High 18. August 2016). On the other hand, supports are located at 1,1073 (76,4 % Fibo of 1,1300-1,0339), 1,0992 (20-day SMA) and 1,0826 (200-day SMA).
** FXStreet News Editorial, FXStreet**