EUR/USD (current price: 1.1253)
The pair bounced back hard from the 200-day MA once again following the U.S services data, as the ECB and the Federal Reserve are still in the focus investors. The worse than expected German Industrial Production data and the negative surprise in the French Trade Balance added to the fears regarding the weakness of the Eurozone economies. The continued weakness in the European indicators might be enough for the ECB to extend the Quantitative Easing program, following the same steps by the Bank of Japan last year.
Our assessment: The pair still trades just above the 200-day MA, as the long-term picture remains neutral before this month’s central bank meetings.
