EUR/USD remains range-bound ahead of Germany’s business climate figures. Last week, the dovish stance by the European Central Bank (ECB) pushed the currency pair from the week’s high of 1.1830.
In today’s event, analysts expect the Ifo business climate index to come in at 102.1 compared to June’s 101.8. Germany is the leading economy in Europe. As such, higher-than-expected figures from this region are likely to boost the Euro.
Besides, EUR/USD will be reacting to the US new home sales data. Experts have predicted a rise of 3.5% MoM after the 5.9% decline in May. The percentages equate to 800,000 new home sales in June, which would be higher than the prior month’s 769,000.
EURUSD technical outlook
EUR/USD is seesawing around 1.1775. At the time of writing, it was up by 0.03% at 1.1776. Since mid-last week, it has been trading within a tight range of between 1.1754 and 1.1781. On a two-hour chart, it is between the 25 and 50-day exponential moving averages. Notably, it has remained below the 50-day EMA since Friday.
I expect EUR/USD to remain within the horizontal channel in the near term as investors await further cues in the form of Germany’s business climate data. Higher-than-expected figures are likely to boost the currency pair to the crucial level of 1.1800.
If that happens, the next target will probably be at 1.1815. On the flip side, a move below the channel’s lower border will have the bears retesting 1.1700.