A sea of red engulfed the markets yesterday as the German ZEW Economic Sentiment went into negative figures for the first time since November 2012. An index above 0.0 is a optimism representation that echoes through German analysts and institutional investors. Month on month industrial production fell more than the estimated drop, coercing the market to sell off their Euro denominated assets as EUR/USD fell from 1.276 and never looked back for the entire trading day, stopping just 300 points above the 1.2600 psychological barrier attained 3 days ago.
An oversold signal on the H4 Stochastics Oscillator gives rise to possibility of a a retracement higher before falling, as the H1 Traditional MACD reminds us that the intraday trend is bearish on technical analysis. Patience and a timely response at the resistance is the key for today.