EURUSD Price, Chart and ZEW data:
- ZEW data mixed but growth remains challenging.
- EURUSD may struggle to move higher, FOMC on Wednesday.
A mixed bag of German and Euro-Zone ZEW data with German expectations picking from a lowly level while Euro-Zone economic sentiment stayed mired in negative territory.
EURUSD nudged lower on the data and in response to news that the German Economic Council had cut its 2019 growth forecast to 0.8% from a prior 1.5%. Traders will now look ahead to the latest FOMC meeting for Fed Chair Jerome Powell’s latest thoughts on the state of the US economy. No rate hike is expected but Powell’s thoughts on the balance sheet will need to be closely monitored.
EURUSD Five-Minute Price Chart (March 19, 2019)
Retail traders are 45.2% net-long EURUSD according to the latest IG Client Sentiment Data, a bullish contrarian indicator. Recent changes in daily and weekly sentiment however give us a stronger contrarian bullish bias for EURGBP.