EUR/USD Chart Analysis: The Pair is Slowly Recovering
Looking at the chart on the four-hour time frame, we see that the EUR/USD pair is slowly recovering after the slowdown of the dollar, and for now, we have additional support with a smaller trend line at the bottom and a moving average of MA20. We can expect to climb to the MA50 and the upper resistance line in the zone around 1.20000. We need a negative consolidation and a drop below the lower support line for the bearish option, targeting the previous low at 1.18500.
According to a poll by the Ifo Institute on Thursday, German business confidence strengthened to its highest value in more than two years in June, as easing restrictions on the coronavirus pandemic raised expectations and current assessments by managers. As a result, the business climate index rose to 101.8 in June from 99.2 in the previous month. The result was the highest since November 2018 and also exceeded the expected level of 100.6.
German Economy
The companies assessed their current business situation much better, and optimism also increased in the second half. The German economy is recovering from the coronavirus crisis, said Clemens Fuest, IFO president.
The current conditions index was 99.6 in June. Economists predicted that the index would advance to 97.8 from 95.7 in May.
Also, the index of expectations rose to 104.0 in June from 102.9 in the previous month. This was slightly above the expected score of 103.9.
Business confidence in production has grown to its highest value since April 2018. The companies were significantly more satisfied with their current business, and their expectations were somewhat less optimistic. Although many companies were concerned about the increase in bottlenecks in semi-finished products. In the service sector, business sentiment has jumped more. Indicators of the current situation and expectations increased significantly in June compared to the previous month.
In trade, easing constraints has greatly improved the business climate and confidence that the recovery will continue in the coming period and surpass the June results.
