EUR/USD – Euro subdued in light data session

EUR/USD is showing little movement on Tuesday, as the holiday hangover continues in the markets. Currently, the pair is trading at 1.1253, down 0.03% on the day. There are no major events, so the pair is likely to have a quiet day. The eurozone releases consumer confidence, which is expected to remain unchanged at -7 points. In the U.S., New Home Sales is forecast to slow to 647 thousand, while the Richmond Manufacturing index is also projected to remain unchanged at 10 points. On Wednesday, Gemany releases the Ifo Business Climate index.

With the eurozone mired in an economic slowdown, investors are hoping that the German locomotive will pull the rest of the eurozone back onto the tracks. German numbers have also disappointed, particularly manufacturing, which has been hit hard by the global trade war. Not unsurprisingly, German business climate has been steadily losing ground since the middle of 2018, reflective of weakening economic conditions. Still, the indicator remains close to the symbolic 100-level, and the April estimate stands at 99.9 points.

Crude oil prices jumped to a 5-month high after the Trump administration announced that it would terminate sanction waivers given to some importers of Iranian oil, as of May 1. This move is intended to further tighten sanctions against Iran and cripple Iranian oil exports. Oil prices are up close to 50% since December, and if the rally continues, we could see volatility from EUR/USD.

US sparks Asia oil rush

EUR/USD Fundamentals

Tuesday (April 23)

• 9:00 US HPI. Estimate 0.6%
• 10:00 Eurozone Consumer Confidence. Estimate -7
• 10:00 US New Home Sales. Estimate 647K
• 10:00 US Richmond Manufacturing Index. Estimate 10

Wednesday (April 24)

• 4:00 German Ifo Business Climate. Estimate 99.9

*All release times are DST

*Key events are in bold

EUR/USD for Tuesday, April 23, 2019

EUR/USD for April 23 at 6:20 DST

Open: 1.1257 High: 1.1261 Low: 1.1242 Close: 1.1253

EUR/USD Technical

EUR/USD posted small losses in the Asian session and has recovered in European trade

• 1.1212 is providing support
• 1.1300 is the next resistance line
• Current range: 1.1212 to 1.1300

Further levels in both directions:

• Below: 1.1212, 1.1120 and 1.1046
• Above: 1.1300, 1.1434, 1.1553 and 1.1622

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