Comment on the situation on a market 18.02.14

Euro can get under pressure today

Latest data about European GDP supported Euro currency as it decreased the danger of deflation and thanks to ECB forecast regarding inflation growth continuation in the next several days to 2,0% EURUSD is being traded at 1,3700. But even though there are lots of positive signs today EUR can get under pressure if weak data from ZEW are published today. According to the latest German statistics it is possible to predict that statistics by ZEW will be weaker than the prediction. If it really happens then EURUSD will decrease below the level of 1,3700 and can test the level of 1,3630 which equals to Fibonacci 38%.

Technically it is quite possible due to pair overbought. At the same time, in case of weak data from Great Britain it can lead to GBPUSD correction.

Semen Kamensky​