Economic Sentiment Turns Positive in Europe, But EUR/USD Keeps Declining
The economic sentiment in the Eurozone has been negative since March last year, with the economy tumbling due to the coronavirus lock-downs. It was improving towards the end of the year and in january it turned positive, but in February the Sentix investor confidence indicator turned negative again, as shown in our economic calendar. Today’s report was expected to show an improvement to 0.3 points and it did turn positive, jumping above expectations as well.
Eurozone Sentix Investor Confidence
- March Sentix investor confidence 5.0 points vs 1.4 expected
- February confidence was -0.2 points
Euro area investor morale jumps to its highest level in over a year as sentiment improves amid vaccine optimism and a hopefully better economic outlook later in the year.
“Global vaccination campaigns are making good progress, raising hopes of effective protection. Those trends allow for a faster reopening of the economy. That is what investors are betting on.”
The 20 SMA has turned into resistance for EUR/USD
The Euro continues the decline, as EUR/USD slides lower. The pace of the decline is quite strong, since the smaller moving averages, such as the 20 SMA (gray) are providing resistance. Today even that moving average couldn’t catch up with the price during that weak retrace higher. We are following this pair to find an opportunity to open a sell forex signal.
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