EZ economic sentiment raise, Deutsche slashed economic growth

Author: Trade Pro Skills

Tuesday, 16 March 2021 Number of words: 264 Study time: 2 Minutes Views: 73


EURUSD Daily Chart

By: Ahura Chalki

Market analyst – IFC Markets

Eurozone ZEW Economic Sentiment for March, raise to 74.0, from previous 69.6, also German ZEW Economic Sentiment for March up to 76.0 from 71.2. Before today's data, Deutsche Bank has slashed 2021 economic growth forecasts for the Eurozone from a November forecast of 5.6% to 4.6%. But for the UK, the projection is 5.7%, up from 4.6% previously (Reuters). For the UK, everything is about an excellent vaccination program, which will cause an earlier opening of the economy than other countries. The USA also has the same optimism. For the United States, Deutsche raised its projection to 6.6% economic growth, a sharp jump from November 4% projection. The USA getting closer to 100 Million vaccinated while in EU countries one after another pausing the AstraZeneca vaccine.

Based on the fundamental data that put the USD in a stronger policy, EUR gets under pressure by different forecasts. Technically also pairing moves in a clear downtrend in a Daily chart. 50 DMA at 1.2082 is key resistance, while RSI at 42 and easing OBV trend line, both supporting lower prices. PP sits at 19.3500 and lower than that, S1 at a psychological level of 1.1900, breaching these levels, will open the door for S2 and S3 at 1.1880 and 1.1845.

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