EUR/USD. Forecast for January 23, 2013
Yesterday data on ZEW Economic Sentiment in January was published. It was striking, as the German economic sentiment index surged 24.6 points to 31 against forecast for 12.2 points, economic expectations for the Eurozone also increased significantly by 23.6 points to 31.2 points. But the attempt to consolidate the growth was decisively stopped. U.S. Existing home sales in December rose to 4.94 mln against forecast for 5.09 mln. Richmond Fed Manufacturing index in January was -12 against forecast for 4. Major companies that are in DJIA were in positive territory. As a result Dow Jones Industrial Average added 0.46%, the euro, 10 points.
The Republican-led U.S. House plans a vote today to temporarily suspend the nation’s borrowing limit. It intends to remove the debt ceiling for now as a toll for seeking deeper spending cuts. As it was noticed earlier the market’s initial reaction may be the euro’s drop. Today there is no significant statistical data on the Euro Area and the USA.
From the technical point of view we expect falling to 1.3266, the yesterday’s low. The second target is 1.3232, support of the trendline on the H4. The third target is 1.3167.
The material has been provided by Instaforex Company – instaforex.com