- The Euro fell against the US Dollar, and currently trading near the last low of 1.1105.
- There is likely a double bottom pattern forming on the hourly chart of the EURUSD pair, which may provide us a bounce moving ahead.
- Today in the Euro Zone, the German ZEW Economic Sentiment was published.
- The outcome was positive, as there was a rise from the last reading of 0.5 to 6 in Oct 2016.
EURUSD Technical Analysis
The Euro after trading near 1.1200 against the US Dollar found sellers near a bearish trend line formed on the hourly chart. The EURUSD pair fell and currently trading near the last low of 1.1105. It is currently finding bids and consolidating.
This means there is a chance of a double bottom pattern on the chart, which may ignite an upside move in the near term.
If the pattern is invalid, there is a possibility of a move towards the 1.23 extension of the last wave from the 1.1105 low to 1.1206 high.
German ZEW Economic Sentiment Index
Today in the Euro Zone, the German ZEW Economic Sentiment was published, which measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic.
The market was expecting a rise from the last reading of 0.5 to 4 in Oct 2016. However, the result was better, as there was a rise to 6. The report added that “Financial market experts’ sentiment concerning the economic development of the eurozone has improved notably. The respective indicator has increased by 6.9 points to a reading of 12.3 points. On the other hand, the indicator for the current situation in the eurozone declined by 2.3 points in October 2016 to a level of minus 12.8 points.”
Overall, the euro gain buyers around the double bottom support and could make an up move in the short term.