Euro Falls Sharply Ahead of German IFO Business Climate Data, 25+ PIP Volatility Likely in Euro Parity; Feb 22, 2021
Euro German IFO Business Climate
The Day will remain calm as a single economic indicator is there and that is German’s IFO Business Climate Data. It’s a leading indicator of economic health – businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment. This data is derived via a survey of about 9,000 businesses which asks respondents to rate the relative level of current business conditions and expectations for the next 6 months. This survey is highly respected due to its large sample size and historic correlation with German and wider Euro zone economic conditions.
Let’s see how Euro has reacted during the previous data release:
EUR/USD: The euro erases previous gain against U.S. dollar and falls noticeably ahead of German IFO Business Climate data. The pair made intraday high at $1.2135 and low at $1.2105 mark. Triple EMA suggests bullish trend on H1 chart, current downside movement suggests the short term trend reversal only. On the top side, key resistance is seen at $1.2128 mark. A sustained close above on H1 chart requires for the upside rally. Alternatively, current downside movement will take the parity back below $1.2080 mark. The key boundaries for the parity will be $1.2097 to $1.2147 mark. A sustained close of either side on H1 chart will provide further direction to the parity.
Key Resistances: $1.2147, $1.2170, $1.2205, $1.2264, $1.2310
Key Supports: $1.2097, $1.2080, $1.2020, $1.1961, $1.1900
Take a look and do trade wisely!