On Friday, despite several important fundamental statistics on the
Eurozone, the EUR/USD price did not go beyond the sideways channel.To get more news about IC Markets, you can visit wikifx.com official website.
However, Euro buyers managed to protect the support at 1.1758, which is a
good signal for forming an upward correction. In the morning forecast,
we paid attention to the level of 1.1780 and was advised to open short
positions from it when a false breakout was formed. The bears
successfully defended the above level, which led to pressure on the
Euro. However, we did not see a strong sell-off due to the fundamental
data on the Eurozone.
In the second half of the day, the bulls managed to form a false
breakout in the support area of 1.1758, which led to a signal to buy
the Euro but failed to break above the middle of the day 1.1784 sideways
channel.
On Monday, the focus should be on the IFO German Business Environment
Indicator Report. The growth of this indicator is expected, which may
lead to the strengthening of the European currency. However, all buyers
tones will remain at the level of 1.1758, the lower band of the current
sideways channel.
Therefore, only good data on the growth of conditions in the business
environment, which should exceed the forecasts of economists and the
next formation of a false breakdown at this level, form a signal to open
long positions to restore EUR / USD to the middle of the 1.1784
sideways channel.