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EUR / USD: German ZEW Institute Indexes in Focus

Sep 17 2019, 02:27 PM (+06) |

The pair EUR / USD on Tuesday maintains a downward vector, remaining under strong dollar pressure. Demand for the American currency grew due to the aggravation of the situation in the Middle East. Many investors see the dollar as a defensive asset while reinforcing geopolitical risks. But the growth potential of the dollar in the coming days will be limited by the expectations of the outcome of the two-day FOMC meeting. There is no consensus on the Fed’s possible rate decisions, so many investors will so far refrain from active trading in American currency.

Pressure on the European currency is exerted by uncertainty around Brexit and the threat of the introduction of duties by the United States. The day before, the representative of the European Commission, Cecilia Malmström, announced that the Trump administration does not want a peaceful settlement of this conflict and may introduce duties on goods from the EU in the amount of $ 11 billion.

At the European trading session, investors will be focused on data from the ZEW Institute on September economic conditions and sentiment indices in Germany.

On the chart, the currency pair found support at 1.0990. While buyers keep the price above this mark, the scenario with the growth of quotations in the direction of the level of 1.1085 remains a priority for today. With the breakdown of support at 1.0990, we can expect a decline in quotations to 1.0925.

Resistance levels: 1.1015, 1.1085, 1.1155.

Support levels: 1.0990, 1.0925, 1.0890.

The main scenario is an increase to 1.1085.

An alternative scenario is a breakdown of support at 1.0990 and a decline to 1.0925.

There is a mixed fundamental background on the market. On the chart, the price is held above the support level of 1.0990, from which short-term longs can be considered.

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