ZEW Institute showed excellent business sentiment on Tuesday in the eurozone: the ZEW Economic Sentiment index in Germany grew from 10.7 to 26.7 in January while 15.2 was expected; in the eurozone as a whole, the index grew from 11.2 to 25.6 against the forecast of 16.3. According to the first reaction, the euro climbed, but the day ended with a decrease of 12 points, which confirms the intention of investors not to change their strategy and continue to buy the dollar in the medium term.
On the daily chart, today opened below the MACD (blue moving) line, which also indicates the market’s intention to continue to move down today. The goal of supporting the embedded line of the price channel 1.1033 is open. The direct signal to open a position will be the price overcoming the Fibonacci level of 123.6% at the price of 1.1073.
On the four-hour chart, yesterday’s short-term growth was stopped by the red indicator line of balance, which can be read as growth “within the permissible limits”. The signal line of the Marlin oscillator has turned from the boundary with the territory of growth. Overcoming the first goal by price opens the second at the Fibonacci level of 138.2% (1.0986).
The material has been provided by InstaForex Company – www.instaforex.com