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    BRAND MARKET ANALYSIS AND NEWS German consumer confidence surprised Market News

    EURUSD, 60 min

    German March GfK consumer confidence unexpectedly rose to 9.5 from 9.4 in the previous month. Expectations had been for a dip amid market turmoil and growing uncertainty about the economy outlook, but at least German consumers are more upbeat. This seems to be largely due to a sharp rise in personal income expectations in February, which offset slightly less optimistic business cycle expectations. The willingness to buy remained steady at very high levels and the willingness to save turned slightly less negative. A surprisingly good result, which is a reflection of a robust labour market and rising wages, although if overall business confidence declines further and orders and production don’t improve, this will also feed through the labour market and consumer confidence. Consumption alone can’t drive the recovery forever.

    There was no notable impact on the EURUSD from the news. After finding support near my target 2 area (blue boxes refer to old targets that were reached) the pair is now trading near 50% Fibonacci level that coincides with a resistance at 1.1047 and the upper end of the price channel. In 60 min timeframe the pair is also overbought as per stochastic oscillator. This suggests the line of least resistance is down intraday today. The pair has also formed a daily pin bar which tells about daily downside momentum slowing down. However, the nearest resistance levels at 1.10700 aren’t far away. We might therefore see a rally attempt from levels near 1.0956 support and then weakness again between 1.1070 and 1.1136.

     

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    Janne Muta

    Chief Market Analyst

    HotForex

    Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.


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