EUR waiting for ZEW

German data will give some insight on the German economy behavior

FOREX 5

Europe still suffers from Covid-19 lockdowns as Spain's central bank said the country's GDP could decline by 6.8% to 12.4% this year. Germany, which seems to be less impacted by the coronavirus, will slowly ease lockdown measures. German data will give some insight on the German economy behavior. Indeed, later this morning, the German ZEW Current Situation Index for April will be released (-80.0 estimated). The Economic Sentiment is expected at -41.0.

From a technical point of view, on a 30-min chart, EUR/USD has validated a continuation triangle and remains capped by its declining 50-period moving average (in blue). The intraday RSI stands within its selling area between 50 and 30. Readers may therefore consider the potential for further weakness below horizontal resistance at 1.0860. The nearest support would be set at Apr. 17 bottom at 1.0810 and a second one would be set at set at horizontal support at 1.0790 in extension.

Source: TradingView, GAIN Capital


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