On Monday, January 25, the euro / dollar pair closed in the red. The euro lost 0.28% against the dollar, to 1.2137. He came under pressure in the European session after the publication of German statistics on the business climate from IFO. Germany’s business climate fell to a six-month low in January as a second wave of COVID-19 halted economic recovery. It is expected to stagnate in the first quarter, the Ifo economic institute said on Monday. In the American session, the fall accelerated to 1.2116.
Scheduled statistics (GMT + 3)
- Confederation of British Industrialists’ January Retail Sales Index to be released at 14:00 in Britain
- At 17:00 the US will announce the change in the house price index from S & P / Case-Shiller for November
- US To Publish Consumer Confidence Indicator And Fed-Richmond Manufacturing Index For January At 18:00
The euro was late, but dropped to the lower channel line. On Friday, it was held back from falling by the crosses, on Monday it was already falling on the declining crosses against the euro. The price did not reach the channel line itself. The market moved the pair into a correction phase. At the time of this writing, the euro is worth 1.2129. There is an opinion that buyers in the European session will try to raise the price to 1.2158 (Lb).
Based on the wave structure from the low of 1.2054, we can assume that after the upward movement to the balance line, the euro will continue to weaken. I highlight the support zone 1.2085-1.2109. The 1.2085 level represents 76.4% of the growth from 1.2054 to 1.2190. To continue to grow, buyers need to protect it and fight it off as high as possible.
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