EUR/USD trades up to a high of 1.1671 after the release of the German Ifo data
The data release here wasn't too encouraging as the business climate index fell for the sixth time in seven months. Current conditions index fell again and future expectations held steady following prior month's revision. It wasn't a good report by any means and the remarks by Ifo here doesn't paint a pretty picture either.
And yet, the euro edged higher. What gives?
Data aside, the weakening German economy isn't something new and has been talked about for quite some time now and with the Bundesbank also lowering its growth forecasts for the economy two weeks ago it's not really surprising to see this kind of data come in.
The bigger focus of the market right now is on the charts, with trading today heavily reliant on sentiment more than data. And with respect to the Ifo data, it's not exactly non-farm payrolls or inflation data level kind-of-data.
EUR/USD earlier tested the 200-hour MA and buyers defended the level to maintain the near-term bullish bias in the pair. And that is helping to keep the pair supported during the session.
The high today remains at 1.1673 during the opening hours today, with the high on Friday @ 1.1675 yet to be breached - and resistance looms at the 50.0 retracement level @ 1.1680. Those will be levels to watch out for on the topside before any test of the 1.1700 level.
