EUR/USD: Two reasons for the current slide to turn into an upswing

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EUR/USD has been on the back foot as US yields push the dollar higher. Conversely, optimism about the global economy is boosting the euro. On Monday, the German IFO Business Climate and Fed Chair Powell’s words may send the pair higher, Yohay Elam, an Analyst at FXStreet, reports.  

Key quotes

“The German IFO survey for February is set to show optimism in Europe’s largest economy, providing support to the euro.” 

“Jerome Powell, Chairman of the Federal Reserve, is scheduled to testify before Congress on Tuesday and Wednesday, but his prepared remarks may already be published on Monday. Powell will likely reiterate the bank’s commitment to supporting the recovery – which means looser monetary policy for longer – and that could weigh on the greenback.” 

“Looking up, resistance awaits at 1.2140, which was a high point on Friday. It is followed by 1.2170, the February high, and then by 1.2190.” 

“Support is at 1.2080, where the 100 SMA hits the price. It is followed by 1.2055 and 1.2020.”

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