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Strong Statistics from Germany Supported Euro Quotes

10/26/2022 12:09 PM

The European currency continues its upward correction, trading around 1.0000, after the publication of positive macroeconomic statistics from Germany.

The German index of business expectations in October amounted to 75.6 points, which is higher than 75.3 points in September and better than the forecast of 75.0 points. The assessment of the current situation in the region consolidated at 94.1 points, significantly exceeding the pessimistic forecasts of analysts, which suggested a decrease in the indicator to 92.4 points, and the business climate index at 84.3 points, which corresponds to September 84.4 points and exceeds the preliminary scores 83.3 points. According to experts, this data indicates that after five months of pessimistic views, expectations in the country's business circles have finally found a “bottom,” from which a turn in a positive direction can begin.

The US dollar fell below 111.000 in the USD Index on the back of a disappointing report from the Conference Board: according to October data, the consumer confidence index fell to 102.5 points from 107.8 points earlier, which is the sharpest monthly drop since July 2021. Today, a report on the housing market is also expected, and the forecast assumes a decrease in sales in September by 13.9% after an increase of 28.8% in August.

The trading instrument is moving within the global downwards channel, coming close to the resistance line and demonstrating its readiness to break it.

Technical indicators gave a signal to buy: fast EMAs on the Alligator indicator crossed the signal line upwards, and the AO oscillator histogram forms new bars above the transition level.

Resistance levels: 1.0014, 1.0186. | Support levels: 0.9876, 0.9680.

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