February 15, 2019 | SQUARED DIRECT – The Euro peaked at 1.1333 on Monday before falling back towards 1.1300 amid the poor performance of European indices and dovish comments from ECB officials echoing Benoit Coeure’s statement last week about increasing stimulus if the eurozone’s economic situation deteriorates further.
Looking ahead, Germany and EU will release the ZEW survey on economic sentiment today, both seen improving modestly in February. The EU will release some minor December figures, including the Current Account and Construction Output which usually have a limited effect on the Single currency.
EURUSD technical analysis
The Euro climbed yesterday but failure to break above the 50-day moving average caused prices to retest key support levels at 1.13 (S1). Should we remain above this support, we could see another push towards 1.1350 (R1).
Alternatively, if 1.13 breaks, the Single Currency could fall towards 1.1270 (S2) and possibly 1.1250 (S3).
Support: 1.13 / 1.1270 / 1.1250
Resistance: 1.1350 / 1.14
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