DowntownForex

EUR/USD Limit Sell at 1.4170

By Forex District – The pair is slightly higher but having a hard time above 1.4000. The Euro rose ahead of the German ZEW economic sentiment as risk appetite spurred demand for the currency and investors anticipated an advance in the index. However, the pair dropped around 30 pips as the data came in much weaker than anticipated. The index dropped 5.3 points to 39.5, against a 48.0 forecast and a 44.8 reading in the previous month.

Economic expectations for the Eurozone fell in July by 3.2 points to 39.5, while the current economic situation in the Eurozone remain unchanged at -90.7.

Meanwhile, Euro area industrial production rose for the first time in over 9 months to 0.5% from -1.4%. The data, however, came in below market expectations of 1.0%.

Looking at the 4hour chart, EUR/USD remains below the 1.4000 level with downside risks equaling those to the upside. Much of the pairs next move will be determined by Goldman Sachs earnings and U.S retail sales. Currency traders will monitor equity markets closely and guide the moves according to their reaction. Much of the Goldman Sachs move has been priced in (if positive) so markets will then focus to U.S. retail sales. The bias is neutral in the near term ahead the aforementioned key events. The next level of support is the 1.3958, followed by 1.3890, 1.3810 and 1.3725.

Resistance lies at 1.4016 followed by 1.4071, and 1.4134.

Trading levels in play:

Limit Sell @ 1.4170 Targets: T1 1.4150 – T2 1.4015 Risk: 1.4219
* Good Till NY Close After 15 pips profit move stop to entry, take profit at will. Trade is canceled if it rebounds near entry and moves higher by 20 pips. Comments will follow if outlook changes.

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