EUR/USD (current price: 1.1149)
The Euro continues to declined compared to its most important counterpart after hitting 1.16 three weeks ago. The German and the Eurozone ZEW Economic Indices both came in below expectations, as the economic activity continues to suffer from weak manufacturing trends. Services still keep the Eurozone economy from contracting, but the common currency suffers for the relative weakness. The pair is now back to levels last seen in March and it might head below the 200-day MA.
Our assessment: EUR/USD is currently on a new short-term low with support at 1.11 and below that at 1.08. The short-term picture remains bearish below 1.1225.
