The Euro is settling down around the 1.1280 level against the USD
Although the ZEW's German investor sentiment was more positive than expected, the EUR / USD failed to get stronger momentum to complete the pair's recent bullish correction, which did not exceed the 1.1323 resistance level before settling down around 1.1280 at the time of writing the analysis . As we mentioned before, we now confirm that the stability of the pair below the psychological support level of 1.1300 will continue to support the bearish direction of the pair. The pair is currently awaiting the release of US industrial production data.
Inflation figures in the United States showed an improvement in March. Where the CPI rose to 0.4%, its highest since January 2018. The PPI also looked strong, rising 0.6%, the highest level in 5 months. Overall, US inflation is still well below the Fed's 2.0 percent target, but stronger inflation figures will boost the desire of some Fed officials who prefer to raise interest rates in 2019 if economic prospects improve. The minutes of the Federal Reserve meeting in March left the door open for further interest rate hikes this year, but current market pricing does not indicate any increase until 2020, and some analysts expect interest rate cuts later this year.
ZEW survey, a major measure of investor confidence. Has been immersed in the negative region over the past 12 months, but has recently improved. The continuation of the global trade war will continue to be a pressure factor on the Euro-Zone economy led by Germany.
The most important support for the EUR / USD today: 1.1275, 1.1190 and 1.1055, respectively.
The most important resistance levels for the euro against the dollar today: 1.1330, 1.1400 and 1.1485, respectively.