EUR/USD catches fresh bid, re-attempts 1.1770 ahead of Ifo
- UST’s, USD consolidates in Asia
- Focus shifts to German Ifo surveys
- Rising expectations of ECB QE taper
The EUR/USD pair extends its side trend into early Europe, having moved back and forth in a 20-pips narrow range above mid-1.17s throughout the Asian session, as the US dollar and Treasury yields consolidated the recent gains.
EUR/USD wavers around 100-DMA at 1.1759
The spot offered some respite in Asia, as the bulls continued to guard the 1.1750 barrier amid a pause in broad-based US dollar buying, as the US yields entered a consolidative mode, after the overnight extensive rally triggered by the Republicans leaning towards Taylor as the next Fed Chair, while optimism over Trump’s tax overhaul plans also boosted the sentiment.
Despite, a broadly firmer USD, the Euro outperformed and stood resilient amid increased hopes of QE tapering plans likely to be announced by the ECB at its policy meeting due tomorrow.
Looking ahead, the major now awaits the German Ifo numbers for fresh trading impetus, while the US durable goods data will have a major impact on the USD flows later today.
EUR/USD Technical View
Jim Langlands at FX Charts, explained: “The dailies are pretty flat, as are the 4 hour momentum indicators, and support remains at 1.1740 below which further good support lies at 1.1720/30. Under here, we could then test 1.1700 and the stronger level at 1.1660/70 although probably not today. On the topside, offers will arrive at the session high (1.1792), at 1.1800/05 and then at 1.1825 although I am not sure that we manage to get up there again in the short term. “