On Tuesday, Euro continued to fall, testing 1.1682 which is a new low. The European Center for Economic Research (ZEW) has sharply dropped its economic forecast for Germany from 63.3 to 40.4 and warned that “the fourth wave of pandemic might happen in Autumn or a slowdown in China’s growth” will increase economic risks. This is the third time that the forecast for the economic data is reduced till the lowest level since November 2020. The Eurozone Economic Confidence Index also fell sharply to 40.4 from 61.2 in August.
From a technical point of view, Euro’s daily candle closed bearish with an upper and lower shadow. 1.1700-1.1600 is the key support for the Euro. H4 graph showed that the upper and lower Bollinger band has narrowed slightly, and the MACD has been below the zero axis for a long time. Indicators also show a bearish sign. Overall prioritize operate on the fluctuation zone. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1.1700
Resistance：1.1740-1.1770-1.1800
Support：1.1700-1.1680-1.1650
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