The EUR/USD is currently struggling to maintain a foothold above 1.13.
1.13 Elusive For Now
Looking at the EUR/USD 60 minutes chart above, we note that it had been trying to gain a foothold above the 1.13 region. The bullish momentum needs to see 1.13 cleared decisively before heading towards 1.14. As liquidity streams in for the US market, we may gain more insights to the technical undertones.
It may be prudent to note that 1.12 may provide a pivotal influence, attempting to shift the price action back to it’s vicinity.
The yellow lines are the possible support and resistance regions in the immediate vicinity. Do note that price action in shorter time frames are often sentimental in nature.
German Sentiment Delights
The German ZEW Economic Sentiment came in much better than expected. It was reported to be 3.1 instead of the predicted 0.9. A more than 200% increase to the upside. As a survey of investors and analysts, this sentiment report holds a weight. Their sentiments may be derived from their working knowledge of the economy and hence may be an early indicator of economic health. As Germany is the biggest economy in the Euro Zone, this development will likely result in positive sentiment.
Still to Come
Many important economic events are still to come, including various industrial figures and US retail sales. US Federal Reserve Official Bullard is scheduled to speak. Speeches may include a question and answer segment that may go into unscripted territory and hence may spur unexpected developments and volatility.
It is important to follow an economic calendar so that you can reduce the possibility of an unexpected development affecting your trading plan. Members can log in to their dashboards for an economic calendar.
Always plan your trades with proper money management.