Downbeat German data further soured weak Euro’s sentiment
The Euro hit new marginally lower three-year low after downbeat German ZEW data.
Economic sentiment in Germany weakened significantly in February (8.7 vs 21.5 f/c and 26.7 prev).
ZEW said that significant decline in economic sentiment was caused by negative impact from coronavirus epidemic
ZEW also said that development of the German economy in late 2019/early 2020 was well below expectations, focusing on sharp drop in development in export sectors.
Additional negative signals which come from EU’s largest economy would further weigh on the single currency in steep fall, which extends into the third straight week.
Fresh bears cracked target at 1.0820 (24 Apr 2017 low) and look to fill the gap (1.0723/1.0916) that would generate strong bearish signal.
Strong bears so far ignore deeply oversold daily studies, as downbeat German data further sout=red the sentiment.
Broken Fibo 76.4% support reversed to initial resistance (1.0863), guarding falling 10DMA (1.0895).
Res: 1.0841; 1.0863; 1.0895; 1.0925
Sup: 1.0820; 1.0800; 1.0777; 1.0723