When is the German ZEW survey and how could it affect EUR/USD?
|German ZEW Survey Overview
The ZEW will release its German Economic Sentiment Index and the Current Situation Index – reflecting institutional investors’ opinions for the next six months – during the early European session this Tuesday,
The headline Economic Sentiment Index is expected to worsen to -27.3 in October as against a -22.5 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is also expected to deteriorate further to -26.0 from -19.9 posted in September.
How could they affect EUR/USD?
Anil Panchal, FXStreet's own analyst offered important technical levels to trade the EUR/USD pair – “Among the resistances, 50-day Simple Moving Average (SMA) and a downward sloping trend-line since late-August, around 1.1040/45, becomes the key for buyers as a break of which can escalate the recovery to 50% Fibonacci retracement of August-October downpour, at 1.1065 now. During the pair’s further rise beyond 1.1065, 61.8% Fibonacci retracement near 1.1110 and August 23 high surrounding 1.1155 will lure buyers.”
“On the downside break below 38.2% Fibonacci retracement near 1.1020, the pair can revisit eight-day-old horizontal support around 1.1000 mark. However, pair’s declines below 1.1000 may struggle to conquer a 21-day SMA level of 1.0985 and last week’s low nearing 1.0940,” he added further.
Key Notes
EUR/USD forecast: Bulls remain cautious ahead of German Zew survey
EUR/USD registers an inside day ahead of German Zew survey
EUR Futures: room for some consolidation near term
About German ZEW
The Economic Sentiment published by the Zentrum für Europäische Wirtschaftsforschung measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic. Generally speaking, an optimistic view is considered as positive (or bullish) for the EUR, whereas a pessimistic view is considered as negative (or bearish).
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