EUR/USD: The Euro bounces, and cancels the fall yesterday despite bad news

© Reuters. EUR/USD goes up significantly – EUR/USD accelerates considerably higher this Friday afternoon, with a peak of 1.1385 for the moment, up almost 100 pips compared to the low of 1.1288 yesterday evening.

At this stage, the EUR/USD pair has reversed almost all of the fall recorded yesterday in the face of the european PMI indexes disappointing and at the meeting of the ECB dovish.

This increase is all the more significant that more bad news could weigh on the single currency, with about conservative members of the boards of governors of the ECB Villeroy and Coeure.

The main statistics of the day, the IFO index of business climate in German, could also weigh on the trade, to 99.1 points for the month of January, compared to 100.7 points early and 101 previously, the lowest since march 2016.

Finally, the German government confirmed the rumors yesterday, lowering its growth forecast 2019 1.8% to 1%, which also seems to have been ignored by the traders.

To explain the rebound of the Euro, we have to turn to the Dollar, which corrects significantly on Friday, and in part to profit-taking, traders are banking gains on the decrease displayed by the EUR/USD during the week.

From a graphical point of view, the rebound of the Euro-Dollar this Friday, has allowed him to climb back over the moving averages 100 and 200 hours, and broke the intermediate resistance of 1.1350.

However, the profile will current downtrend of the EUR/USD will really be questioned that in the case of breakage confirmed above 1.14.

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