- The pair loses some upside momentum and returns to 1.14.
- The greenback remains bid around the 96.30 region.
- German IFO survey disappointed expectations today.
EUR/USD is now losing some upside momentum and is giving away part of its initial gains, returning to the 1.1400 neighbourhood.
EUR/USD now looks to ECB
The pair is now looking to extend the rebound from yesterday’s fresh 2-month lows in the 1.1380 area, regaining the key barrier at 1.1400 the figure although losing some steam around 1.1420.
Spot faded the initial spike after the German IFO survey came in below consensus today, showing that Business Expectations, Current Assessment and Business Climate all dropped to 99.8, 105.9 and 102.8, respectively.
The lack of further headlines from the Italian front appears to have mitigated some of the downside pressure around the European currency as of late, although risks remain to the downside as the Italy-EU dispute over the 2019 budget remains far from abated.
Looking ahead, the ECB meeting and subsequent press conference by President Draghi are next on tap, with expectations tilted to the neutral side.
EUR/USD levels to watch
At the moment, the pair is up 0.14% at 1.1408 facing the next hurdle at 1.1498 (10-day SMA) seconded by 1.1520 (21-day SMA) and finalyy 1.1550 (high Oct.22). On the flip side, a break below 1.1381 (low Oct.24) would target 1.1319 (200-week SMA) en route to 1.1299 (2018 low Aug.15).
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