It has been a headline-light week for euro traders; the focus remains on today’s EA PMI surveys and ECB minutes. Traders in a bearish mood sell EURUSD.
The recent consumer confidence data again confirmed that the economic situation in Germany has been weak. The ZEW indicators of economic sentiment for Germany has improved slightly but still in the negative territory. In February 2019 the indicators recorded an increase of 1.6 %, stands at -13.4 and well remained below the long-term average of 22.4 points.
“At the moment, we do not expect a rapid recovery of the slowing German economy,” according to ZEW President professor Achim Wambach. He also said, “For the next six months, the financial market experts in our survey do not expect any improvement.”
Turning to the EZ flash consumer confidence data, in February consumer confidence increased slightly of 0.5% points to -7.4. We learned some optimism in consumer confidence, but ahead of the Brexit deadlock, March readings are the litmus test to gauge the confidence level.
What’s on today?
February manufacturing for Germany and EZ and ECB’S January meeting minutes will be released. On top of these US, December durable goods orders will be released.
The single currency rallied nearly 0.70% this week, so far on the weaker dollar. The outlook remains miserable but the weaker dollar could offer support for the time being to the resistance level seems to be at 1.1400 and 1.1440.
Ahead of today’s data and event risk pivotal stands at 1.1320 below here focus on 1.1290/1.1270 and 1.1230 levels.
In the Asia session, EURUSD bids well trading with 0.10% and hold pivotal so far. The daily RSI is recovering slightly, and moreover, the oscillator has been pointing bullish. Under these conditions keep an eye on the resistance around 100MA and 1.1440 level.
The return of further USD weakness, which should allow EM and G10 currencies to perform better.
Read our weekly technical overview
It is important to always keep in mind the risks involved in trading with leveraged instruments.
What is your Technical View?
Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.