EUR/USD Price Neutral Under 1.1800, Focusing on German IFO figures

On Friday, despite several important fundamental statistics on the

Eurozone, the EUR/USD price did not go beyond the sideways channel.

However, Euro buyers managed to protect the support at 1.1758, which is a

good signal for forming an upward correction. In the morning forecast,

we paid attention to the level of 1.1780 and was advised to open short

positions from it when a false breakout was formed. The bears

successfully defended the above level, which led to pressure on the

Euro. However, we did not see a strong sell-off due to the fundamental

data on the Eurozone.

In the second half of the day, the bulls managed to form a false

breakout in the support area of 1.1758, which led to a signal to buy

the Euro but failed to break above the middle of the day 1.1784 sideways

channel.

On Monday, the focus should be on the IFO German Business Environment

Indicator Report. The growth of this indicator is expected, which may

lead to the strengthening of the European currency. However, all buyers

tones will remain at the level of 1.1758, the lower band of the current

sideways channel.

Therefore, only good data on the growth of conditions in the business

environment, which should exceed the forecasts of economists and the

next formation of a false breakdown at this level, form a signal to open

long positions to restore EUR / USD to the middle of the 1.1784

sideways channel.