EUR/USD has turned bearish since March 28, as a result of the strengthening of the dollar. It has plunged almost 2% from March 28 to April 10.
However, EUR/USD has rebounded since Monday April 10, after hitting a 1-month low of 1.0568.
This morning, we saw the release of a series of German and Eurozone economic data.
The German ZEW economic sentiment and current situation (Apr), were 19.5 and 80.1 respectively, both surpassing expectations and the previous figures.
The Eurozone ZEW economic sentiment (Apr) was 26.3, better than expectations and the previous figure. The Eurozone industrial production (YoY) was 1.2%, lower than expectations, however, better than the previous figure. Overall, the performance of the data was better than the previous figures.
This morning, the EUR/USD bulls broke the psychological resistance level at 1.0600 after the release of the data.
On the 4-hourly chart, the price has been moving from the lower band to the middle band by the Bollinger Band indicator, suggesting the bearish momentum has waned.
The daily Stochastic Oscillator is around 20, suggesting a rebound.
The resistance level is at 1.0620, followed by 1.0640 and 1.0655.
The support line is at 1.0600, followed by 1.0585 and 1.0570.
Keep an eye on the German CPI (Mar), to be released on Thursday April 13, at 07:00 BST, as well as the US retail sales, to be released on Friday at 13:30 BST. It will likely affect the strength of EUR/USD.
