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German ZEW Economic Sentiment scored –18.2 points. Early expectations stood on -19.2 points after a low score of -25.5 in the previous month. So, it is a bit better than expected. The bigger surprise came from the all-European figure:   -3.8 instead of of -16.3 that was predicted and far better than -21.2 seen last month.

EUR/USD traded around 1.3070 before the  publication, after testing support at 1.3060 beforehand. The release doesn’t really help it recover.

EUR USD Under Uptrend Support ZEW Sentiment September 18 2012
EUR USD Under Uptrend Support – Click image to enlarge

The negative numbers mean pessimism among the investors surveyed.

Rumors circulated earlier that the ZEW number would be especially strong. The recent improvement in the mood around Europe support an improvement.

If 1.3060 is lost, the round number of 1.30 is undoubtedly strong support.  Resistance  is at 1.3105 followed by 1.32. For more on the euro, see the EUR/US forecast.