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Credit Agricole made a fundamental forecast concerning ZEW news event - German ZEW Economic Sentiment and ZEW Economic Sentiment. It's a leading indicator of economic health - investors and analysts are highly informed by virtue of their job, and changes in their sentiment can be an early signal of future economic activity:
- "Investors will focus on the German the ZEW index for October. ZEW should point at some worsening in business sentiment on account of China, VW and, more recently, Deutsche Bank. We expect the former to be a longer-term drag on business sentiment in the Eurozone’s growth engine."
- "Indeed, recent trade and industrial orders data has already signalled that the German exporters are struggling in the face of the global demand shock emanating from China."
- "A disappointing ZEW today could add to the worries in the market. All that said, however, with the ECB still not actively considering more easing measures, there need not be an immediate impact on EUR."
From the technical point of view - EURUSD price is on bullish market condition in intra-day basis for the ranging within 1.1396 key resistance level and 1.1343 key support level. The 'reversal' level for this pair is 1.1270 so if the price breaks this support level from above to below - the reversal from the primary bullish to the primary bearish market condition may be started.
