The EUR / USD pair seems to be still affected by the Institute of Economic Research (IFO) German business-confidence-index yesterday which fell to the level of 99.2. This figure is below the market consensus at 99.9 levels.
In Thursday trading market (25/4) at 14.46 ECT, the EUR / USD was observed weakening by 0.19% at the price of 1.1133. The euro weakened to the lowest level since May 2017 against the USD.
IFO data reflects the weakness of this country with the largest country with economic support in Europe. The weakening of the IFO business-confidence-index was below predictions in the poll which predicted a rise to 99.9. The bleak conditions in German business activity are also increasingly emphasized by the index of IFO expectations which fell from 95.6 to 95.2.
This index underscored the negative outlook on the European region’s economy.
Inevitably, market sentiment towards the euro was hit and finally weighed on the currency’s movements in opposition to its main rivals the US dollar. In addition to disappointing German data releases, the euro was also pressured by the US dollar strength that dominated other major pair/currencies.
The dollar index touched the highest level for the past twenty-three months at 98.19 levels. Trade negotiations between the US and China planned to be completed this month also seemed to provide positive sentiment for the US dollar to continue to strengthen.
In daily graphical technical analysis where the xponential moving average indicator (EMA) widens with the course of the exchange rate falling. Then on the vortex idicator (VI) with a broad blue over red condition where the course of the rate has the potential to strengthen.
Furthermore, the true strength indicator (TSI) indicator is in the negative area 13 which indicates the exchange rate is not having enough strength to go down. In general, EUR / USD still has the potential to continue the correction in the next trade.
We recommend selling for the GBP / USD pair as long as the price is below 1.1116. The support level is between 1.1120 – 1.1086 – 1.1001. While resistance is between 1.1206 – 1.1258 – 1.1344.