Despite a more positive than expected ZEW Economic Sentiment in the Eurozone, the Euro still failed to break through the 1.14 levels although gaining against the dollar.
Economic sentiment, which measures investors’ outlook for the economy, reached 21.5 in April from last month’s 10.6. Analysts predicted only 8.8 this month. The economic sentiment in Germany was released yesterday as well, surging to 11.2 from last month’s 4.3, eclipsing forecast of 8.0.
The Euro is still trading within a narrow range of 1.1352 to 1.1375 and is 30 pips shy of reaching 1.14. The support is located at 1.1335 and 1.1235 subsequently, and the resistance is at 1.1420 and 1.1500 subsequently.
European Central Bank (ECB) president Mario Draghi will announce the future of interest rates on Thursday, but it is expected that the bank will retain the current 0.25.
On the other hand, the USD index fell due to housing data revealed to be below projections, hinting a downtrend in the real estate and construction sectors. Building permits issued was down to 1.086 million from 1.177 million, a 7.7 percent fall from the previous month. The number of houses that started construction also slumped to 1.089 million to 1.194 million yoy.
As of time of writing, the EUR/USD is trading at 1.1368. The MACD indicator is at negative location and the price is rising.