- 1 EUR/USD – Technical Analysis for Australian Forex Brokers.
EUR/USD – Technical Analysis for Australian Forex Brokers.
Eurozone – German Ifo Business Climate Index
On Wednesday, at GMT 10:00 a.m., the Ifo Institute for Economic Research will publish this month’s German Business Climate index. The Ifo Business Climate figure measures the level of a composite index, which is created by surveying around 7,000 businesses in Germany by asking them to rate the comparative business conditions of now and in six months.
Since the survey has a large sample size compared to similar studies, Forex traders consider the Ifo Business Climate to be a strong leading indicator of the overall economic optimism in the country.
Last month, the German Ifo Business Climate index came out at 111.0, and this month, the forecast was set slightly higher, at 111.03.
United States – Unemployment Claims
On Thursday, at GMT 2:30 p.m., the US Department of Labor will release the unemployment claims figure, which measures the changes in the number of people who claimed for unemployment insurance over the last week.
Forex options investors consider the unemployment claims data to be one of the most important fundamental indicators of the US job market. This is primarily because unemployment and consumer spending has direct correlation and an increasing number of unemployment claims indicate lower consumer spending in the economy, which makes up the bulk of the economic activity in the United States.
Last week, the US unemployment claims figure came out at 234,00 and the forecast for this week is set at an increase to 247,000.
Trade Recommendation for the EUR/USD
After declining around 960 pips since November 9, 2016, the EUR/USD finally broke above the downtrend line on December 29. However, it soon fell to a new low in the New Year. After a brief retracement, the bullish momentum resumed and over the last three weeks, the EUR/USD has climbed up by around 400 pips.
As the German Ifo business climate index is expected to go up slightly, there is a good possibility that the EUR/USD price will continue to remain bullish and about to test the psychological resistance near 1.0788. Hence, if the pair penetrates and closes above this level, it would likely attract additional bullish momentum in the market.
Under the circumstances, it would be recommended that Forex traders consider placing a BUY order at market price for the EUR/USD with their Australian Forex brokers, as soon as it breaks above the 1.0788 level. A possible profit target for this trade would be around the 1.0865 level. On the other hand, Forex traders should consider placing a stop loss order below 1.0745.
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