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Eurozone Investor Confidence Drops; EUR/USD Slides

The Sentix Investor Confidence reading for the Eurozone in June fell from 12.8 to 8.5. Economists had forecast about rise to 13.5. 


(source: tradingeconomics.com)


Some might think that the ECB's stimulus actions would help improve sentiments especially in investors. However, that is not the case so far. Still, the index has shown overall positive sentiment (above 0), for 10 months in a row.

Here is the official release from Sentix.

This week is light on fundamental release. The investor confidence data is usually not a big mover, but the market seems to have turned bearish on EUR/USD after the release. 


(eurusd 1h chart, 6/9)

As we get into the 6/9 US session, the 1.36 level comes into play. Being above to hold above 1.36 still gives EUR/USD a short-term bullish outlook. Otherwise, the short-term bullish outlook is killed. A break below 1.36 could revive a bearish outlook that has the 1.36 handle down to the 1.3475, 2014-low in sight.