HomeForex MarketEUR/USD Slips on Poor EU ZEW Financial Sentiment Information, Parity at Danger

EUR/USD Slips on Poor EU ZEW Financial Sentiment Information, Parity at Danger

EUR/USD TALKING POINTS

  • ZEW Financial Sentiment Index (JULY) – ACT: 0-53.8

EURO FUNDAMENTAL BACKDROP

The euro’s preliminary response to the ZEW financial sentiment index misses from each Germany and the eurozone respectively (see financial calendar under) was expectedly destructive testing the a lot talked about parity degree. The -53.8 learn for the EU area was the bottom print since November 2011 thus reiterating the fading degree of optimism withing the eurozone. I imagine the 1.0000 psychological assist zone won’t maintain and is prone to be penetrated within the short-term. Dangers dealing with additional euro weak spot embody the potential power disaster, an more and more hawkish Fed and recessionary fears backing havens just like the U.S. greenback. Trying forward, U.S. inflation would be the focus tomorrow with markets in search of additional steering across the U.S. financial system.

EUR/USD ECONOMIC CALENDAR

Supply: DailyFX financial calendar

TECHNICAL ANALYSIS

EUR/USD DAILY CHART

eurusd daily chart

Chart ready by Warren Venketas, IG

Resistance ranges:

Assist ranges:

IG CLIENT SENTIMENT DATA: BEARISH

IGCS exhibits retail merchants are at present LONG on EUR/USD, with 74% of merchants at present holding lengthy positions (as of this writing). At DailyFX we usually take a contrarian view to crowd sentiment leading to a short-term draw back bias.

Contact and comply with Warren on Twitter: @WVenketas

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

9 + 11 =

Most Popular