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Overview of the German ZEW survey
The ZEW will release its index of the German economic climate and the current situation index at 10 am GMT at the EU session later today, reflecting the opinion of institutional investors for the next six months.
The overall index of the economic climate is expected to fall to -18.4 in January, against an unexpected recovery to -17.5 the previous month. At the same time, the sub-index of the current situation should also decelerate to 43.5 against 45.3 in December.
How could affect the EUR / USD?
A surprisingly positive title shot could provoke a short rebound and help the duo try again to recover the 1.1400 run. However, a larger than expected decline would dampen the already weaker sentiment around the shared currency and pave the way for an extension of the pair's short-term bearish trajectory.
FXStreet badyst Yohay Elam writes, "The initial support is at 1.1345, which is the lowest and lowest point around Christmas." 1.1310 was the lowest swing in the aftermath of the new year. 1.1270 is a double bottom after stopping falls in December 1.112 is the lowest of 2018 ".
"Looking at the top, 1,1380 was the initial low after the 1,400 loss." "1,1410 is a significant resistance after rejecting retake attempts." This price also coincides with the SMA 200. Support at 1,1450 was used early Jan. 1.1480 was a higher before the recent falls., "Yohay adds.
Key notes
• Germany: Focus on ZEW figures today – TDS
• EUR / USD forecast: should confirm bearish fall before ECB decision on Thursday
• EUR / USD Technical Analysis: Scope for additional inconvenience. Target remains at 1.1300 and below
About German ZEW
The economic sentiment published by the Zentrum für Europäische Wirtschaftsforschung measures the sentiment of institutional investors, reflecting the difference between optimistic investors and pessimistic badysts. In general, an optimistic view is considered positive (or bullish) for the euro, while a pessimistic view is considered negative (or bearish).
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