Key Points
- The Euro declined and traded as low as 1.0571 against the US Dollar where it found support.
- The EURUSD pair is currently recovering, and formed an ascending channel with support at 1.0580 on the hourly chart.
- Today in the Euro Zone, the German Economic Sentiment for April 2017 was published by the ZEW.
- The outcome was better than the forecast, as the index rose from the last reading of 12.8 to 19.5.
EURUSD Technical Analysis
The Euro moved down recently and broke a major support zone at 1.0600 and 1.590 against the US Dollar. The EURUSD pair traded as low as 1.0571 from where a recovery was initiated. The pair even moved above the 23.6% Fib retracement level of the last decline from the 1.0669 high to 1.0571 low.
The pair found resistance near 1.0610, and currently following an ascending channel with support at 1.0580 on the hourly chart.
The pair also faced sellers near the 38.2% Fib retracement level of the last decline from the 1.0669 high to 1.0571 low, and now trading below the 21 hourly simple moving average.
German Economic Sentiment Index
Recently in Euro Zone, the German Economic Sentiment for April 2017 was published by the ZEW. The forecast was lined up for a rise from the last reading of 12.8 to 14 in April 2017.
However, the result was better than the forecast, as the index rose from the last reading of 12.8 to 19.5. Also, the German Current Situation index rose from 77.3 to 80.1 in April 2017, which was better than the forecast. The report stated that “the long-term average as calculated from the beginning of the survey (December 1991) is yet to be beaten, these results are comparable to the expectations prior to the Brexit vote in June 2016”.
Overall, there is a chance that the EURUSD pair trading higher towards 1.0610 or 1.0620 in the near term.
