EURUSD and German ZEW Data:
- German current conditions worsen, economic sentiment nudges higher.
- EURUSD likely to test the 1.1300 level.
Q1 2019 Trading Forecasts including USD and EUR.
IMF Warns of Risks to Global Growth, Advanced Economies to Fall Sharply
EURUSD Touches a Two-Week Low
The latest ZEW readings confirmed that German, and the single-block, sentiment remains negative, confirming recent data. The German economic sentiment reading ticked 2.5 points higher to -15.0 and despite this increase the reading remains well below the long-term average of 22.4 points. The current situation assessment fell sharply, down 17.7 points to 27.6, the lowest reading since January 2015.
The Euro-Zone economic assessment rose a mere 0.1 points to -20.9, while the current economic situation in the Euro-Zone fell by 6.8 points to 5.3.
German BDI Warns of Serious Growth Problems
The Euro fell further against the US dollar and hit a two week+ low and is likely to fall further with 1.1300 the next target. A break below here opens the 1.1265 area ahead of the November 12 low at 1.1215. The pair remain all three moving averages and continue the bear move off the January 10, 1.1570 high.
EURUSD Daily Price Chart (August 2018 – January 22, 2019)
Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.
What is your view on EURUSD – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.com or via Twitter @nickcawley1.
