- Overnight Interest Rate Update 02.09.10 Tue, 09 Feb 2010 05:24 GMT
- RICS Survey Hints UK House Prices May Decline as Supply Swells Tue, 09 Feb 2010 04:41 GMT
- UK Retail Sales Growth Worst in 15 Years in January, says BRC Tue, 09 Feb 2010 02:19 GMT
special reports
Article
Previous Articles
Print
- Friday, 16 October 2009 23:05:12 GMT Risk Appetite Stalls But the Dollar and Dow Maintain Trend Through Week's End
- Friday, 16 October 2009 21:47:18 GMT Market Volatility Consolidates following Disappointing Earnings (Forex Video)
- Friday, 16 October 2009 10:35:56 GMT British Pound Retraces, Euro Grapples with 1.50 Against US Dollar
- Friday, 16 October 2009 16:02:03 GMT Will A Pullback In Equities Sink The Euro?
- Friday, 16 October 2009 05:27:00 GMT Euro Down Ahead of Trade Data, Markets to Gauge Currency Impact on Exports (Euro Open)
- Friday, 16 October 2009 08:38:27 GMT Tech Talk 10.16.2009
- Thursday, 15 October 2009 22:59:48 GMT The Dollar and Dow See Little Follow Through, Yet Currencies Produce Extreme Volatility (Forex Video)
- Thursday, 15 October 2009 15:41:32 GMT GBP/USD Advance Slows at Staunch Resistance Creating Scalping Opportunity
- Thursday, 15 October 2009 14:30:15 GMT British Pound Forecast to Rally further on Forex Sentiment
- Thursday, 15 October 2009 06:51:38 GMT New Zealand Dollar Gains as Inflation Outperforms But Rate Hikes Look Suspect (Euro Open)
- Wednesday, 14 October 2009 18:24:03 GMT US Dollar Initially Drops on Indications the Fed Could Expand MBS Purchases
- Wednesday, 14 October 2009 22:24:51 GMT Dollar Follows the Dow's Push Above 10,000 Instead of Strong Retail Sales (Forex Video)
- Wednesday, 14 October 2009 05:36:26 GMT US Dollar Drops to New Low as Chinese Export Figures Boost Risk Appetite (Euro Open)
- Tuesday, 13 October 2009 21:55:42 GMT Dollar, Markets Maintain Their Sentiment-Based Momentum Despite Data (Forex Video)
- Tuesday, 13 October 2009 16:50:57 GMT Defined Trading Levels Makes USD/JPY Attractive For Scalpers
- Tuesday, 13 October 2009 04:22:35 GMT US Dollar Holds Up Despite Asian Stock Gains, UK CPI and German ZEW on Tap (Euro Open)
- Tuesday, 13 October 2009 05:28:14 GMT Risk Aversion and Geopolitical Tensions Creep In (Opening Comment)
- Tuesday, 13 October 2009 02:27:39 GMT Declining U.K. Consumer Prices Would Validate Bearish Pound Technical Outlook
- Monday, 12 October 2009 21:51:52 GMT Traders Leaning on the Dollar as its Dominance Continues to Falter (Forex Video)
- Monday, 12 October 2009 14:50:59 GMT Forex Strategy Outlook: US Dollar Range Likely to Hold on Low Volatility
Economists are predicting that confidence among German firms declined in January as the country slips deeper into a recession. The export driven economy has seen global demand weaken, especially for automobiles- one of the country’s primary exports. Sentiment is forecasted to have fallen to 81.0 from 82.6, where 100 is a balanced reading.
Fundamental Outlook
Economists are predicting that confidence among German firms declined in January as the country slips deeper into a recession. The export driven economy has seen global demand weaken, especially for automobiles- one of the country’s primary exports. Sentiment is forecasted to have fallen to 81.0 from 82.6, where 100 is a balanced reading. The current assessment component is expected to fall to 85.0 from 88.8 which may offset the improving outlook gauge. Traders may chose to focus on the improving outlook as it is forecasted to rise to 77.5 from 76.8 which would justify the short-term bullish technical outlook, which is calling for a possible test of resistance at 1.3390. Yet, the reading would still be significantly below 100 and with conditions worsening in the country as evidenced by further contraction in manufacturing and services in January, the positive results won’t be a given. Considering recent Euro bullish momentum any signs of optimism could extend its gains and warrant a long EUR/USD trade.
Technical Outlook
I maintain that the decline from 1.4723 is corrective in nature - either the second leg (a b wave) of a triangle or flat. There is downside potential until 1.2477, which is where the two zigzags would be equal but near term structure is bullish as long as price is above 1.2858. Exceeding 1.3090 exposes potential chart resistance from the 9/19 high at 1.3390.
For More Technical Analysis Visit the Daily Technical Report
To discuss this report contact John Rivera, Currency Analyst: jrivera@fxcm.com
Resources
