1.1810 is a tough nut to crack. Yet another attempt to break above this line failed. This time, the trigger for the retreat stems from a small miss on the German IFO business climate. A score of 117.2 point is below the 117.5 points expected.
There is a divergence between the present and the future. The Current Assessment component advanced from 124.7 to 125.4 points. And the Expectations component slipped from 110.7 to 109.5.
EUR/USD is trading just below the 1.18 level. Support awaits at 1.1765 and then at 1.1710. Resistance above 1.1810 is at 1.1860.
Volatility in the world’s most popular currency pair wasn’t that great to begin with, and is now slowing down even further as we approach the Christmas holiday.
Later today, the US publishes building permits, housing starts, and the current account. In addition, long-time FOMC dissenter Neel Kashkari will be speaking. These releases could have a bigger impact.
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