21.02.201800:14 Forex Analysis & Reviews: Euro falls against weak data

The data released in the first half of the day adversely affected the prices of the European currency, which continued its decline against the US dollar, following the downward trend formed at the end of last week.

Currently, the sellers of euro will concentrate on the intermediate level of support 1.2320, the breakthrough of which will lead to larger selling and a repeat test of a strong 1.2280 level, from which it was possible to observe a large volume, indicating the entry of institutional players into the market last week.

Data on economic sentiment in Germany put pressure on the euro in the first half of the day.

Despite this, as noted by a number of leading analysts, the prospects for the largest eurozone economy remain quite positive, and this is difficult to argue, as the growth in global demand continues to increase, as well as the active consumption of households.

According to the report of the German institute ZEW, the index of economic expectations in Germany in February this year fell to 17.8 points from 20.4 points in January, while economists expected the index to fall to 16.0 points.

The index of current conditions in Germany in February was 92.3 points against 95.2 points in January, when its maximum was fixed.

All the attention of traders and investors will be focused on tomorrow's data, namely on the Fed's report, as well as on the minutes of the European Central Bank, which will be published a day later. It is these data that will guide the direction in risky assets for the next few weeks.

As for the technical picture, it is possible to count on the growth of the European currency only after the return and consolidation above the resistance level near 1.2420, the breakthrough of which opens the highs of 1.2500 and 1.2600.

Prices of oil again gradually declined after a major upward correction at the end of last week.

Today's speech by the chairman of OPEC did not affect the market situation.

Suheil Al-Mazrui said that the cartel and other oil-producing countries in 2017 complied to a deal to reduce production by 107%, and an important role in this was assigned to Russia. It should be noted that in November 2017, OPEC extended the agreement on reducing total oil production by 1.8 million barrels a day. The chairman of OPEC also said that the balance of the oil market is still not restored and the cartel is trying to establish cooperation with countries that are not part of OPEC.