FOREX NEWS: GERMANY’S ZEW SURVEY IN THE FOCUS
EUR/USD
Yesterday the pair grinded lower but movement was very sluggish as the day didn’t have any major news releases and tensions in Iraq and Ukraine eased.
Technical Outlook
Price returned below 1.3400, a fact which shows that bulls lack the strength needed to stage a full scale reversal. Lately the pair is confined between 1.3445 resistance and 1.3330 support but we slightly favor a move into the mentioned support, especially if the bears can maintain price below the current level of 1.3400.
Fundamental Outlook
The day’s only major event is the release of the German ZEW Economic Sentiment scheduled at 9:00 am GMT. This is a survey based on the opinions of German analysts and institutional investors and it’s focused on their opinions regarding a 6 month outlook. The nature of their jobs keeps them highly informed on the economic situation and at the same time, increases the importance of this survey. The expected number is 18.2, a significant decrease from the previous 27.1 and lower numbers will most likely weaken the Euro.
GBP/USD
The pair had an extremely slow day yesterday and no major developments took place on either the fundamental or the technical scene.
Technical Outlook
We expect a touch of 1.6809 resistance before downside movement can resume and it is important to note that price is printing lower lows while the Relative Strength Index is showing higher lows, a behavior known as regular bullish divergence. Often times this divergence results in moves north but the medium term downtrend is strong so we are likely to see bearish movement after an upside correction.
Fundamental Outlook
The United Kingdom didn’t schedule any important indicators for the day thus the pair’s direction will be mainly affected by the technical aspect.