•1.1054 is a weak resistance line
•1.0925 is providing support
Further levels in both directions:
•Below: 1.0925, 1.0821 and 1.0708
•Above: 1.1054, 1.1150, 1.1278 and 1.1376
•Current range: 1.0925 to 1.1054
EUR/USD is unchanged on Wednesday, following losses on the Tuesday session. The pair is currently trading at the 1.10 line. On the release front, there are no major releases on the schedule. German PPI posted a gain of 0.4%, beating the estimate. Eurozone Current Account dipped to EUR 30.8 billion, but this was above expectations. In the US, today’s sole event is Crude Oil Inventories, with the estimate standing at -1.3 million. On Thursday, the ECB meets for a policy meeting and will set the benchmark rate. Over in the US, the key release is Unemployment Claims.
German ZEW Economic Sentiment, a highly regarded report, shocked the markets by posting a sharp decline in July, the first since October 2014. The reading of -6.8 points was nowhere near the forecast of +8.2 points, and recorded a sharp downturn after a gain of 19.2 points in June. Eurozone ZEW Economic Sentiment followed suit with a reading of -14.7 points, compared to an estimate of +12.3 points. In June, the index boasted a strong gain of 20.2 points. These dismal readings point to deep pessimism on the part of institutional investors and analysts, as the shock Brexit vote has raised serious concerns that Germany and the Eurozone could suffer a downturn in economic growth due to Britain exiting from the European Union.