The German Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment Index gauges the six-month economic outlook. A level above zero indicates optimism; below indicates pessimism. The reading is compiled from a survey of about 350 German institutional investors and analysts.
Usual Effect: A high reading or a better than expected number is seen as positive for the EUR, while a low reading is negative.
Frequency: Released monthly, on the second or third Tuesday of the current month.
Last Read : 6.9
Expectations : 1.0
Actual : -3.6
Volatility : High Volatility
Market Impact :Negative data makes the pair under strong pressure , but It found support yesterday at 1.2619 levels.
Technical Outlook : The EURUSD maintained a bullish momentum yesterday , printed support at the 1.2619 levels , topped at the 1.2760 levels. This development leaves the pair targeting the 1.2825 levels , a halt is likely , but a breach will turn focus on the 1.2930 levels , further upside will pave the way towards the 1.2994 levels. On the downside , support comes at the 1.2620 levels , losing this level on a daily closing basis will open 1.2500 next , a cut will open 1.2389 levels , further losses will aim the 1.2300 levels.
Support and resistance : 1.2500 , 1.2580 , 1.2620 , 1.2665 , 1.2700 , 1.2760 , 1.2825
Conclusion : With the key support 1.2620 intact , a higher leg above 1.2760 is likely towards the 1.2825 levels , so negative German ZEW Economic Sentiment could be an opportunity to buy the pair on the dips , however ; you need to keep an eye on 1.2620 levels If this level holds today , Tomorrow , US data will decide next destination , 1.2500 or 1.2825 ?!!! ( Remember : above 1.2620 , it still in recovery mode , and further upside towards the 1.2825 couldn’t be ruled out ).