At 0900 GMT in the EU session later this Tuesday, the ZEW will release its German Economic Sentiment Index and Current Situation Index, which will reflect institutional investors’ expectations for the next six months.
In July, the headline Economic Sentiment Index is predicted to fall to 75.2, down from 79.8 the previous month. Meanwhile, the Current Situation Sub-Index is expected to rise to 5.0 from a prior low of -9.1.
As the German ZEW publication approaches, the EUR/USD is retreating from multi-day highs near 1.1895. “Any future rise over the 1.1900 level could be viewed as a selling opportunity. As a result, the pair should be capped in the 1.1935-40 supply zone. A convincing break of the latter, on the other hand, will serve as a new trigger for bullish traders, allowing the pair to retake the critical 1.2000 psychological level. Immediate support, on the other hand, is located in the 1.1850-45 range. The persistent weakness below will reaffirm the bearish outlook and lead to some aggressive technical selling. The pair might then resume its downward trend towards multi-month lows around the 1.1800 level “Haresh Menghani, an analyst at FXStreet, explains.
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The Economic Mood Index, issued by the Zentrum für Europaische Wirtschaftsforschung, evaluates institutional investor sentiment by comparing the share of optimistic investors to the share of pessimistic analysts. In general, an optimistic perspective of the EUR is considered positive (or bullish), whilst a pessimistic view is considered negative (or bearish)./n
