- The pair stays unable to revert the prevailing pessimism.
- German Economic Sentiment bettered to -15.0 in January.
- Economic Sentiment in the euro area came in at -20.9 from -21.0.
The downside pressure around the European currency stays intact on Tuesday although EUR/USD manages to cut some losses and move to the 1.1360 region in the wake of key data releases.
EUR/USD offered post-ZEW
Spot is attempting to consolidate in the lower bound of the weekly range around 1.1350 so far amidst USD-buying and following results from the German/EMU ZEW Survey.
In fact, German Economic Sentiment improved to -15.0 for the current month while Current Conditions came in at 27.6 vs. 43.5 forecasted. Additionally, Economic Sentiment in the broader euro area slipped back to -20.9 for the same period.
In the US data space, Existing Home Sales are only due later today.
What to look for around EUR/USD
Today’s results from the ZEW Survey brought in some relief to the existing concerns over the ongoing slowdown in the region, although current figures remain far away from optimistic levels. Moving further, EUR is expected to remain under scrutiny ahead of the ECB meeting due later in the week, where President Draghi is expected to deliver a cautious (dovish?) message. In the longer run, fundamentals in the region should remain in centre stage along with the upcoming EU parliamentary elections (May), Italian politics and French social unrest.
EUR/USD levels to watch
At the moment, the pair is losing 0.03% at 1.1361 and faces the next support at 1.1324 (200-week SMA) seconded by 1.1306 (2019 low Jan.3) and finally 1.1269 (monthly low Dec.14 2018). On the flip side, a break above 1.1380 (55-day SMA) would target 1.1415 (21-day SMA) en route to 1.1442 (38.2% Fibo of the September-November drop).