EUR/USD Gains on Positive EZ Consumer Confidence

EUR/USD TALKING POINTS

  • Positive EU consumer sentiment data opens the scene ahead of the ECB President’s speech.
  • Euro bid post-announcement.

EURO FUNDAMENTAL BACKDROP

The euro garnered some favor this morning after economic and industrial data exceeded estimates (see calendar below). This could reiterate the hawkish rhetoric seen yesterday via several ECB officials including President Christine Lagarde. Although the consumer headline confidence figure slipped to record lows, the print was in line with expectations which shifted focus to the aforementioned economic and industrial metrics. Focus now shifts to central bank heads speaking later this afternoon at the ECB’s Sintra forum.

EUR/USD ECONOMIC CALENDAR

Source: DailyFX economic calendar

TECHNICAL ANALYSIS

EUR/USD DAILY CHART

eurusd daily chart

Chart prepared by Warren VenketasIG

Initial reactions were positive giving euro a lift after yesterdays strong dollar rally pushing above the 1.05 support zone.

Resistance levels:

  • Trendline resistance (black)
  • 50-day EMA (blue)/1.0601
  • 20-day EMA (purple)

Support levels:

IG CLIENT SENTIMENT DATA: MIXED

IGCS shows retail traders are currently LONG on EUR/USDwith 63% of traders currently holding long positions (as of this writing). At DailyFX we typically take a contrarian view to crowd sentiment however due to recent changes in long and short positioning we arrive at a short-term judgment disposition.

Contact and follow Warren on Twitter: @WVenketas

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