- The Euro rebounded strongly after Friday's reversal, but has stalled below the 0.9730 – 40 zone.
- Weak data on consumer confidence in the Eurozone has dampened confidence in the Euro.
- If the 0.9740 zone cannot be broken, the bears could retest the 0.9675 zone.
The Euro rebounded strongly after fears of an escalation of the Middle East conflict led the pair to test six-week lows. The pair returned to previous levels, helped by fragile risk appetite, but remains limited below previous support at 0.9730 – 40 so far.
In the Eurozone, the unexpected deterioration of the region's consumer confidence index has not served to give confidence to the pair. A little later, the president of the ECB, Christine Lagarde, will meet with the press. She is likely to confirm that the Bank plans to start lowering rates soon, probably in June. Euro risk is biased to the downside.
On Tuesday, Eurozone PMI data will provide more information on the zone's growth prospects and could give some guidance to the common currency. In Switzerland, the ZEW survey on Wednesday and, above all, Jordan's speech from the SNB on Thursday will be the highlights of the week.
Technically, failure to extend gains beyond 0.9730 leaves the pair in no man's land. Above here, the next target would be the April 11 high at 0.9815 and the April 5 high at 0.9850. Immediate support is at 0.9675. Below, the targets will be 0.9620 and 0.9560.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
