Finally, Something to get Excited about in the Eurozone!
Joe Perry October 15, 2019 3:08 PM
German ZEW Economic Sentiment for October better than expected
Although much of the data has been worse than expected out of the Eurozone for the last month, German ZEW Economic Sentiment for October was released earlier today, and it came out better than expected at -22.8 vs -27.0 expected and -22.5 last. In addition, the Current Conditions number for October was -25.3 vs -26.0 expected and -19.9 last. The German ZEW is a six-month economic sentiment index gauged by institutional investors and analysts.
On a daily timeframe, the EUR/USD has been trading in a falling wedge since September 2018. Since June of this year, the pair has been trading in a descending channel (within the descending wedge) and broke out to the topside on October 9th. EUR/USD is currently pulling back and testing the top trendline of the falling channel as well as the important 1.1000 horizontal support and psychological level.
Source: Tradingview, FOREX.com
On a 240-minute timeframe, we can closely see that, not only are we testing the downward sloping trendline, but also the 38.2% retracement from the low on October 1st to the high on October 11th. In addition, price is testing the 50-period moving average right at that 1.1000 level.
Source: Tradingview, FOREX.com
First support on the downside is at the 50% retracement of the previously mentioned timeframe at 1.0970. Below there we can once again test the wedge lows near 1.0900 and the lows from October 1st at 1.0890. First resistance is at October 11th highs at 1.1061, and then the 38.2% retracement level from the June 24th highs to the October 1st lows at 1.1088.
Brexit headlines may affect the value of the Euro, while US-China trade deal headlines may affect the US Dollar. Both could act as catalysts for a move of EUR/USD in either direction.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.