Improving German investor sentiment bullish for EURUSD

German investor expectations improved more than expected. Will the EURUSD continue climbing?

Investor sentiment in euro-zone’s largest economy improved: German ZEW investor sentiment index for the country improved to 3.1 in April, up from -3.6 in March. It was better than an expected reading of 0.8. Last Friday Eurostat upgraded euro-zone’s industrial production for February, reporting a reading of just 0.2% on month decline instead of 0.5% contraction. Better investor sentiment is bullish for euro. While euro-zone struggles to overcome the negative effects of last recession, the opening of new possible trade war front after US threatened to levy tariffs on $11 billion of EU products is a downside risk for euro. Chances are US and European Union will reach a solution which will not impeded transatlantic trade.

EURUSD

On the daily timeframe EURUSD: D1 is retracing after it hit 5-week low in the beginning of April.

  • The Donchian channel indicates uptrend: it is narrowing up.

  • The MACD indicator is below the signal line and the gap is narrowing, which is a bullish signal.

  • The Parabolic indicator gives a buy signal.

  • The stochastic oscillator is falling but has not reached yet the oversold zone.

We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 1.1323. A price point above that level can be used as an entry point for a pending order to buy. The stop loss can be placed below the lower Donchian bound at 1.1206. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (1.1206) without reaching the order we recommend cancelling the order: the market sustains internal changes which were not taken into account.

Technical Analysis Summary

Position

Buy

Buy stop

Above 1.1323

Stop loss

Below 1.1206

 

 

 

 

 

 

Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: Stable amid trade calm and German stimulus hopes

EUR/USD is trading around 1.1100, marginally higher. President Trump expressed optimism about reaching a trade deal with China while Germany's Scholz opened the door to stimulus. EZ Core CPI is confirmed at 0.9%.

EUR/USD News

GBP/USD steady below 1.2150 after Yellowhammer leak, as Corbyn calls for no'confidence

GBP/USD is trading below 1.2150 amid reports of food shortages in case of a hard Brexit, project Yellowhammer. Opposition leader Corbyn calls for a no-confidence motion against the government 

GBP/USD News

USD/JPY bounces off 106.25, focus on Fed minutes, Jackson Hole

USD/JPY bounces off the key support at 106.25 and heads back towards the 106.50 level, in response to downbeat Japanese trade data, risk-on action in the Asian equities and higher Treasury yields.

USD/JPY News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Bullish levels to watch after Binance announces Venus vs. Facebook's Libra

Cryptocurrencies have been advancing once again, with Bitcoin topping $10,500, Ethereum clawing its way back above $200, and Ripple extending its gains.

Read more

Gold: Drops to multi-day lows, back below $1500 handle

Meanwhile, technical indicators have been gaining negative traction on hourly charts and support prospects for an extension of the corrective slide back towards testing last week's swing lows.

Gold News

Majors

Cryptocurrencies

Signatures