The European economic confidence report shot to a seven month high in January. The index rose to 102.8 during the month, beating estimates of 102.0.
This was also higher from 101.3 in December. In a separate report, the unemployment rate in the eurozone fell to a decade low in December.
EUR/USD Maintains a Steady Rebound
As expected, the common currency is holding up after rebounding from the support level of the 1.1000 region. We could expect a modest pullback with the Stochastics moving into overbought levels.
Still, a formation of a higher low will confirm the upside. In such a scenario, the EURUSD will be targeting the resistance level of 1.1072 in the near term.
