EUR/USD Trims Gains ahead of ZEW

EUR/USD Trims Gains ahead of ZEW

19 April 2016, 11:18
Roberto Jacobs

EUR/USD Trims Gains ahead of ZEW

After hitting daily peaks near 1.1350, EUR/USD has now embarked in a correction lower towards the 1.1320 area.

EUR/USD attention to ZEW, US data

The pair could not sustain the earlier bull run to the mid-1.1300s following a positive open in European equity markets, retreating instead to the current 1.1325/20 band. Data wise, EMU’s Current Account surplus has widened to a non-seasonally adjusted €11.1 billion during February from January’s €8.3 billion, although markets paid little attention to the result.

More relevant instead will be the ZEW Survey in Germany, with Economic Sentiment expected to tick higher to 8.3 during the current month. Across the pond, Housing Starts and Building Permits are only due.

EUR/USD levels to watch

The pair is now up 0.13% at 1.1328 and a break above 1.1454 (2016 high Apr.7) would open the door to 1.1496 (monthly high Oct.15 2015) and then 1.1713 (high Aug.24 2015). On the flip side, the immediate support aligns at 1.1219 (38.2% Fibo of 1.0820-1.1455) followed by 1.1190 (55-day sma) and finally 1.1142 (low Mar.24).


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