Daily Forex Technical Analysis: German IFO Weakens the Euro

EUR/USD (1.31976)

The August German IFO came in weaker than expected pushing the Euro below $1.32. The IFO printed at 106.3 below expectations for 107. This is the lowest reading in nearly 13 months. The IFO Current Assessment also missed the mark coming in at 111.1.

Technically speaking, a move below 1.3250, which has happened took us below the key level at 1.32. We have a cluster support zone at 1.3190 to 1.3205. A move below this level with a daily close can see a test of 1.3150. We would need a break back above 1.3250 to bring back the buyers. The ratio between long and short positions is around 2.05 with nearly 66 percent of the traders in long positions.