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22 Nov 2013
EUR/USD exceeds 1.3500 on better IFO
FXstreet.com (Edinburgh) - The single currency is back above the 1.3500 handle on Friday, with the EUR/USD making fresh 2-day highs beyond 1.3520.
EUR/USD next stop 1.3580?
The pair thus extends its bounce off 1.3400 the figure post-ECB rumours on negative deposit rates, on its way to challenge weekly tops near 1.3580 (Tuesday). The upbeat data from the German IFO indicator showed improvements in all of its components, beating both previous estimates and October’s prints: Current Assessment rose to 112.2 and same path followed Business Climate and Expectations, up to 109.3 and 106.3, respectively. In light of the recent positive results from Germany, Analyst Carsten Brzeski at ING commented, “The German economy is cruising along smoothly. Growth in the last two quarters was partly affected by one-offs and the economy’s real strength is probably somewhere in between. Latest confidence indicators confirm that the economy should continue growing at around its potential growth rate in the coming futures”.
EUR/USD levels to watch
The pair is now up 0.36% at 1.3519 with the next resistance at 1.3546 (MA21d) ahead of 1.3584 (high Nov.20) and finally 1.3589 (high Nov.1). On the flip side, a breakdown of 1.3460 (MA10d) would open the door to 1.3399 (low Nov.21) and then 1.3393 (daily cloud base).
EUR/USD next stop 1.3580?
The pair thus extends its bounce off 1.3400 the figure post-ECB rumours on negative deposit rates, on its way to challenge weekly tops near 1.3580 (Tuesday). The upbeat data from the German IFO indicator showed improvements in all of its components, beating both previous estimates and October’s prints: Current Assessment rose to 112.2 and same path followed Business Climate and Expectations, up to 109.3 and 106.3, respectively. In light of the recent positive results from Germany, Analyst Carsten Brzeski at ING commented, “The German economy is cruising along smoothly. Growth in the last two quarters was partly affected by one-offs and the economy’s real strength is probably somewhere in between. Latest confidence indicators confirm that the economy should continue growing at around its potential growth rate in the coming futures”.
EUR/USD levels to watch
The pair is now up 0.36% at 1.3519 with the next resistance at 1.3546 (MA21d) ahead of 1.3584 (high Nov.20) and finally 1.3589 (high Nov.1). On the flip side, a breakdown of 1.3460 (MA10d) would open the door to 1.3399 (low Nov.21) and then 1.3393 (daily cloud base).