The EUR/USD is wavering today as investors wait for the important German sentiment data even as the new cases starts to rise in the country. The EURUSD is trading at 1.2120, which is slightly below Friday’s high of 1.2145.
EUR/USD news: There will be no major economic numbers from the United States and Europe today. The only key data to watch on the economic calendar is the business climate, current assessment, and expectations from the ifo Institute.
Economists polled by Reuters expect the data to show that the overall business climate increased from 90.1 to 90.5 in February. They also expect that the current assessment dropped from 89.2 to 89.0 whole the business expectations rose from 91.1 to 91.8.
These numbers will come at a time when the number of cases in the country has started rising again. According to the Robert Koch Institute, the number of new infections rose by 7,676 on Sunday, up from 1,562 a week before.
Still, with vaccinations starting, analysts expect the country will handle the pandemic well. On Friday, data by Markit revealed that the manufacturing and services PMIs rose in February.
EUR/USD technical outlook
The four-hour chart shows that the EUR/USD pair has been in a tight range recently. On the four-hour chart, the price is between the 38.2% and 50% Fibonacci retracement levels. The price is also slightly above the 25-day and 15-day weighted moving averages. Notably, it has also formed a bullish pennant pattern.
Therefore, there is a possibility that the pair will continue rising as bulls target the 50% Fibonacci retracement level at 1.2148. However, a drop below 1.2100 will invalidate this trend.
EURUSD technical chart