EUR/USD Price Forecast: Economic Sentiment to Deliver Parity?

For the EUR, it is a busier day on the Eurozone economic calendar. ZEW Economic Sentiment figures for Germany and the Eurozone are due out shortly.

With fears of a Eurozone recession weighing heavily on the EUR, the ZEW numbers could fuel another sell-off.

Forecasts are for the German ZEW Economic Sentiment Indicator to slide from -28 to -38 and for the Eurozone Indicator to fall from -28 to -33.5. The markets are unlikely to find much solace from weaker numbers that beat forecasts.

EUR/USD Price Action

At the time of writing, the EUR was down 0.24% to $1.00144.

A mixed morning saw the EUR rise to an early high of $1.00553 before falling to a low of $1.00047.

The EUR/USD left the Major Support and Resistance Levels untested early on.

Technical Indicators

The EUR/USD will need to move through the $1.0085 pivot to test the First Major Resistance Level (R1) at $1.0137 and resistance at the Monday high of $1.01834.

Market risk sentiment will need to improve to support a return to $1.010.

An extended rally would bring $1.020 into play, through the EUR/USD pair would likely fall short of the Second Major Resistance Level (R2) at $1.0235.

The Third Major Resistance Level (R3) sits at $1.0385.

Failure to move through the pivot would bring the First Major Support Level (S1) at $0.9987 into play.

Another extended sell-off throughout the day would likely test the second Major Support Level (S2) at $0.9935 and support at $0.9900.

The Third Major Support Level sits at $0.9786.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal.

At the time of writing, the EUR sat below the 50-day EMA, currently at $1.02381.

The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, EUR/USD price negative.

While a move through R1 would support a run at $1.02, the EUR/USD pair would likely fall short of the 50-day EMA.

The US Session

There are no US stats for the markets to consider, leaving the EUR/USD pair in the hands of market risk sentiment.