- Summary:
- The euro is off to a good start against the US dollar. ZEW Economic Sentiment reports and Trump speech could dictate if it can hold on to its gains today.
The euro finished in the green against the US dollar on Monday. EURUSD opened the week at 1.1021 and bottomed at 1.1015 before trading steadily higher and closing the day 1.1031.Currently, the currency pair is trading around its open price in the Asian session.
With it being Veteran’s Day in the US and without any report from Europe, yesterday was a quiet day for the shared currency. The biggest news that hit markets was Nigel Farage, UK Brexit Party leader, announcing that they will not contest the seats won by the Tory party. Some market participants say that the euro benefitted from news as traders cut their long dollar positions.
Today, reports on economic sentiment will be released by ZEW at 10:00 am GMT. It is expected to show that Germans have grown less pessimistic about economic conditions this month with the report eyed at -13.2 from -22.8 last month. Meanwhile, the euro zone-wide ZEW economic index is anticipated to print at -11.5 from -23.5 in October.
Market participants are also on their toes for US President Donald Trump’s speech in the Economic Club of New York at 5:00 pm GMT.
EURUSD Technical Outlook
The euro could benefit from better-than-expected reports and positive developments on the US-China trade deal. Should this be the case, we could see EURUSD rally to around 1.1070 and retest the neckline of the double top I pointed out yesterday. Conversely, resistance at the 23.6 Fib level from the high of November 7 to yesterday’s low could hold at the wake of worse-than-expected or more conflicting remarks on trade relations and send EURUSD on its way to its September lows.Download our latest quarterly market outlook for our longer-term trade ideas.