Forex: EUR/USD approaches 1.3100

FXstreet.com (Barcelona) - The EUR/USD is benefiting from improved sentiment on Friday, as the G20/IMF meeting and the Italian Presidential election resume, and is just about to reach the 1.3100 mark as the European morning takes place.

German PPI fell -0.2% (consensus of 0.0%) and annualized data eased from 1.2% to 0.4% (consensus of 0.7%). EMU current account surprised positively, with a wider seasonally adjusted surplus from €13.8B to €16.3B in February, beating expectations of €15.0B, and n.s.a. data at €12.1B instead of the €1.3B consensus. Italy industrial orders fell -2.5% (MoM) and from -3.3% to -7.9% (YoY), while industrial sales contracted -4.7% (MoM).

“Current indications remain that the market will remain capped here (Elliott wave count and TD perfection set-up) and we look for the resumption of the down move”, wrote Commerzbank analyst Karen Jones, adding that the market has found some support at 1.3000/1.2995 and “this guards the 200 day ma at 1.2930 en route to the 1.2740 recent low”, while key support remains 1.2679/61 (61.8% Fibonacci retracement of the July-to-January rise and the November 2012 low). “