The euro has retraced some of the move upwards against the dollar from last week, when Bernanke surprised markets and didn’t taper the Feds bond-buying programme. Tuesdays IFO Business climate index data from the powerhouse of Europe (Germany) was the highest since March 2012, but was below analysts’ expectations.
The pair is currently testing the 14.6% Fib with the RSI pointing higher, which could see the euro push back up towards the 8-month high reached last week. If the euro weakens against the greenback the likely initial support would be 1.3460 (23.6% Fib)
Economic announcements today
US: Durable Goods Orders, New Home Sales, MBA Mortgage Applications
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