EURUSD Nosedives Ahead Of German ZEW Economic Sentiment
Aayush Jindal
Key Highlights
Euro moved lower against most major currencies surrounding all drama in the Euro area because of Greece situation.
German and Euro area ZEW Economic sentiment will be released today, which is likely to impact the Euro pairs in the near term.
Reserve bank of Australia released meeting minutes earlier today which caused swing moves in the Aussie dollar.
German ZEW Economic SentimentThe Euro struggled during the past couple of hours against the US dollar and traded lower towards the 1.1300 support area. There was no major release lined up in the Euro area recently, but there is a critical event scheduled during the London session today. The German and Euro area ZEW Economic sentiment will be published. The forecast is of a gain in February 2015 from 48.4 to 55.0 for German ZEW Economic sentiment. The Euro ZEW Economic sentiment is also expected to register an increase from the last reading of 45.2 to 51.3.Furthermore, other indexes like the German ZEW Survey - Current Situation are also expected to post gains in February 2015. Let us see how the outcome shapes and affects the EURUSD pair in the near term.Technical AnalysisThe Euro collapsed earlier during the Asian session against the US dollar and traded towards the 1.1300 support area. There was a bullish trend line on the hourly chart, which was broken recently, and ignited a downside reaction in EURUSD. Moreover, the pair is now trading below the 100 and 200 hour MA’s, which is a negative sign in the near term.If the pair moves higher from here, then both MA’s might act as a resistance, followed by the broken trend line. The 50% fib retracement level of the last leg from the 1.1427 high to 1.1317 low is also around the same area. So, in short there is a major resistance forming around the 1.1380 level.RBA Meeting MinutesThere was a major release scheduled in Australian, as the RBA meeting minutes were published. The central bank maintained their dovish tone, but somehow the Aussie dollar was seen trading higher after the release. They still believe that the Aussie dollar above most estimates of fundamental value, and more downsides in AUDUSD would help the economy.The AUDUSD pair traded a touch higher and challenged the 0.7800 resistance area earlier today.
If the pair moves higher from here, then both MA’s might act as a resistance, followed by the broken trend line. The 50% fib retracement level of the last leg from the 1.1427 high to 1.1317 low is also around the same area. So, in short there is a major resistance forming around the 1.1380 level.RBA Meeting MinutesThere was a major release scheduled in Australian, as the RBA meeting minutes were published. The central bank maintained their dovish tone, but somehow the Aussie dollar was seen trading higher after the release. They still believe that the Aussie dollar above most estimates of fundamental value, and more downsides in AUDUSD would help the economy.
The AUDUSD pair traded a touch higher and challenged the 0.7800 resistance area earlier today.
If the pair moves higher from here, then both MA’s might act as a resistance, followed by the broken trend line. The 50% fib retracement level of the last leg from the 1.1427 high to 1.1317 low is also around the same area. So, in short there is a major resistance forming around the 1.1380 level.RBA Meeting MinutesThere was a major release scheduled in Australian, as the RBA meeting minutes were published. The central bank maintained their dovish tone, but somehow the Aussie dollar was seen trading higher after the release. They still believe that the Aussie dollar above most estimates of fundamental value, and more downsides in AUDUSD would help the economy.
The AUDUSD pair traded a touch higher and challenged the 0.7800 resistance area earlier today.