Forex Trading: EURUSD bid higher overnight

The EURUSD was boosted higher overnight on the back of the better than expected IFO index out of Germany.  The survey of 7,000 executives rose to 103.5 from 102.4.  The expectation was for a decline to 102.  The Expectation index also improved to 97.3 from 96.8.  96.4 was the expected number.   The German economy accounts for roughly a third of the Eurozone GDP.

The pair broke the 50% retracement level of the recent corrective move lower from the high of 1.6019 to the low of 1.5282 at 1.5651 yesterday.  Today, the pair made it through the 61.8% retracement level at 1.5737, reaching a high of 1.5773.  This level  (1.5737 down to 1.5730) will be watched today to see if it provides the support that leads to another leg higher.