EUR/USD and CAC 40 Range Despite ZEW Survey Miss


Talking Points:

Despite today’s German ZEW survey missing expectations, the EUR/USD and CAC 40 are trading marginally higher so far for Tuesday. Expectations for today’s event were set at 21.8, but were released at an actual reading of 18.6. With little European news left on this week’s economic calendar, traders will be looking towards tomorrow’s FOMC rate decision to guide markets.

Technically, the EUR/USD can be seen trading in a consolidating trading range. This range measures 66 pips, with resistance found at yesterday’s high of 1.1232. Alternatively support is found at last Friday’s low, at a t price of 1.1162. Traders watching the range may elect to trade between these values until a technical breakout occurs. In the event of a bullish breakout, traders may then target a move back towards the standing 2017 high at 1.1285. Bearish breakouts may alternatively expose the May 30th swing low at 1.1109.

EUR/USD, Daily Chart with Range

EUR/USD and CAC 40 Range Despite ZEW Survey Miss

(Created Using IG Charts)

Technically, the CAC 40 is also consolidating in a daily trading range. Support for this range is now found at yesterday’s low at a price of 4,224.70. Prices are currently bouncing off of this point of support, and if prices continue to rise traders may look for resistance near 5,375.50. In the event of a bullish breakout, traders may begin to target the standing 2017 high for the CAC 40 at 1.1285. Alternatively, if the CAC 40 breaks lower, traders may begin to target the April 18th swing low at 4,964.80.

CAC 40, Daily Chart with Range

EUR/USD and CAC 40 Range Despite ZEW Survey Miss

(Created Using IG Charts)

— Written by Walker, Analyst for DailyFX.com

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