EUR/USD Prediction for July 20, 2016

The EUR/USD moved lower on Tuesday in the wake of the softer than expected ZEW survey. With sentiment down the dollar gained traction pushing the currency pair toward support near 1.10. Additional support is seen near the June lows at 1.09.  Resistance is seen near the 10-day moving average at 1.1063.  Momentum is flat with the MACD printing near the zero index level.
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The German ZEW investor confidence fell into negative territory, with the headline reading came in much weaker than expected falling to a 4-year low of -6.8 with the negative reading indicating that pessimists now outnumber optimists. The Brexit referendum clearly left its mark. The current conditions indicator also came in considerably below expectations, falling to 49.8 from 54.5 in June. The sector breakdown showed banks most under pressure at -76.2, down from -61.1 in June. Meanwhile the overall Eurozone ZEW fell by 34.9 points to a reading of -14.7.