EUR/USD set to correct lower, but still bullish

The EUR/USD pair trades around 1.2080 heading into the US opening, poised to correct lower though bearish interest remains limited, Valeria Bednarik, Chief Analyst at FXStreet, reports.

German IFO survey missed expectations in April, Business Climate contracted to 98.7

“Germany published the April IFO survey, which showed that Business Climate unexpectedly contracted to 98.7 from 99.7 and vs the expected 99.7. The assessment of the current situation came in at 94.1, while expectations decreased to 99.5.”

“The US published March Durable Goods Orders, which missed the market’s expectations by raising 0.5% vs the 2.5% expected. Nondefense Capital Good orders ex Aircraft rose 0.9%, improving from -0.8%, but missing the expected 1.5%.”

“EUR/USD is poised to correct lower but still far from indicating a tide change. The 4-hour chart shows that the pair remains above all of its moving averages, with the 20 SMA maintaining its bullish slope at around 1.2050.”