EUR/USD continues to test downtrend

In Europe, manufacturing data showed some positive signs and Germany is looking particularly strong.

EUR
Source: Bloomberg

EUR/USD remains quite resilient and there is a bit of optimism on the Greek front as well, which is giving the single currency a bit of a tailwind. While EUR/USD has remained resilient this week, it’s still just flirting with a downtrend resistance line that has been in place since December last year.

Until we see a close above $1.1000, I wouldn’t be jumping into longs just yet as the medium-term trend is still lower. On the calendar today we have the German Ifo business climate reading, which is also likely to show positive signs. Whether this can keep the euro’s run going will be questionable.

In the US, we have the February durable goods orders, which could resuscitate the greenback if the data beats expectations. Failure to close above $1.1000 could be a trigger for renewed EUR/USD shorts.

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