German IFO and Euro Technicals Sending Mixed Signals

[DailyFx]

German IFO is expected to show business confidence declining further in the near term with the outlook expected to improve. The business climate reading is expected to decline to 97.2 from 97.5, with expectations forecasted to improve to 90.0 from 90.3.






Fundamental Outlook


German IFO is expected to show business confidence declining further in the near term with the outlook expected to improve. The business climate reading is expected to decline to 97.2 from 97.5, with expectations forecasted to improve to 90.0 from 90.3. Depending on what traders focus on the EURUSD price action could move in either direction. Euro technicals are just as indecisive, as the outlook is calling for a bullish correction but with a possible head and shoulders generating bearish price action. An expected German contraction in the final reading of German GDP may be the deciding factor and may lead to the completion of the head and shoulder’s pattern.



Technical Outlook






As long as price is above 1.4672, we are bullish, expecting a correction back to at least 1.4981. Be very cautious though given the presence of a potential head and shoulders continuation pattern.


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