EUR/USD Aims to Breach a Significant Resistance Price Level
Posted on 23. Feb, 2009 by admin in Daily Euro Analysis, Euro Currency, Euro Currency News
The European currency underwent a jumpy weekly session. With the beginning of the trading week, the EUR strengthened against all the major currencies, however a batch of unfortunate publications has eliminated most of it. During last night, the EUR appreciated sharply against the Dollar and the EUR/USD is currently testing the 1.30 level.
Last week took off with an extremely surprising indication as the German Economic Sentiment dropped by 5.8 points, beating expectations for a 26.5 slide. Although the figure was still negative, it significantly better than expected and managed to spark a strong bullish trend for the EUR. However, by the end of the week both the French and the German economies have delivered some disturbing data. The French Manufacturing Purchasing Managers’ Index (PMI) dropped to 35.4 marks, failing to reach expectations for a 35.4. The German Services PMI declined to 41.6, well beneath expectations for a 45.0 mark.
As for this week, the most significant data expected from the Euro-Zone is the German Business Climate, published by the Institute for Economic Research. This indicator tends to have a massive impact on the market, and is expected to give an 83.2 mark. This forecast is well under the levels seen only few months ago, which were always above 100. Such result will probably support the current bearish trend of the EUR.
Other data to look after this week are the German Preliminary Consumer Price Index (CPI), the German Unemployment Change, and the European Core CPI. All are expected to deliver relatively positive result, which could very much initiate an uptrend for the EUR before the week ends.
