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EUR/USD: Terror threat overshadows upbeat German IFO and PMI data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    EUR/USD stays under pressure just below 1.12 handle as investors worried about news of terror attack in Brussels turned a blind eye towards a better-than-expected German IFO and Eurozone PMI figure.

    Flight to safety favors USD

    The flight to safety triggered by terror attacks resulting in rise in demand for treasuries and strength in the US dollar. Consequently, the pair dipped to a session low of 1.1188, before recovering slightly to trade around 1.12 handle.

    The German IFO indices – current assessment, business climate indicator and expectations – printed higher than estimates. Furthermore, Eurozone preliminary PMI figure was better-than-expected as well. However, investors remain focused on news flow from Brussels.

    EUR/USD Technical Levels

    The immediate support is seen at 1.1188 (daily low), under which the spot could drift to 1.1173 (23.6% of 1.0517-1.1476) and 1.1115 (50% of 1.1714-1.0517). On the other hand, a break above 1.1129 (5-DMA) would expose hurdles at 1.1257 (61.8% of 1.1714-1.0517) + 1.1253 (100% Fibo of 1.0517-1.1060-1.0711) and 1.13 levels.
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