EURUSD: A Breath Before 1.14?
Euro is adding 0.20 percent to 1.1392 after a quiet Asian trading session as traders digest the FED decision and the dovish approach. Earlier today the pair hit the daily low 1.1366 and the daily high at 1.1394. In Germany the IFO Business Climate Index came in at 97.4 for June, below the previous month 97.9 and better than analyst’s estimates pointing of 97.3. The Current Economic Assessment for Germany also came below consensus at 100.8 points. That is another number of figures that presents a dismal picture for the Eurozone biggest economy. I expect the ECB to take action soon in the interest rates front.
On the technical side, bulls are building on dovish FED the midterm momentum as the pair broke above the 200 day moving average. Immediate resistance stands at 1.14, a break above can lead prices up to 1.1450 before an attempt to yearly high. On the downside the pair will find support at 1.1260 the 100 day moving average while more bids will emerge at 1.1217 and the 50 hour moving average.