Today we had the German Ifo Business climate index being released.
The number came out lower then expected from a forecast of 107,1 the actual number was 106,6.
This report is a leading indicator in the market and the institute for economic research surveys manufacturers, builders, wholesalers and retailers.
Released once a month, the survey has a large sample size and analises the german and wider eurozone for its economic conditions.
It signals the future economic activity like spending, hiring and investment.
The survey information is obtained from 7000 businesses where current business conditions provide clues to expectations for the next six months.
The remarks from the Bundesbank have been that the first three months for this year have had a strong expansion but that momentum is slowing down now.
A good remark has been that China Germany´s third trading partner is showing signs of improving its economic condition.
Chinas improving situation lead for german investor confidence to be at the highest level this year in April.
Here we see the daily eurusd chart.
Of interest to note is that the 50 day moving average is acting as a dynamic level of support and that the stochastic indicator is at the 20% level.
I would advise if you are not in the trade yet to wait for another candle to see if the level of support holds and the stochastic crosses upwards.
If you prefer to be a bear then I will also provide you with advise.
You may put a sell stop order below the moving average and enter the trade like that if this level breaks.
If you prefer a more conservative approach then wait for price to close below this level to initiate a short trade.
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