EUR/USD Supported at 1.1200, ZEW in Focus

EUR/USD Supported at 1.1200, ZEW in Focus

24 May 2016, 07:58
Roberto Jacobs
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EUR/USD Supported at 1.1200, ZEW in Focus

The EUR/USD pair is seen trading around a flat-line above 1.12 handle, with the bulls trying hard to regain ground amid weaker equities and on hopes of a better ZEW print.

EUR/USD: Risk remains to the downside, 100-DMA eyed

Currently, EUR/USD drops -0.05% at 1.1212, moving away from session lows struck at 1.1203 in early Asia. The main currency pair oscillates back and forth in a 15-pips narrow range over the past few trading hours, with the bulls awaiting some respite from upbeat German ZEW economic sentiment survey.

The headline economic sentiment is seen higher at 12.0 in May from 11.2 measured in April, while the Current Situation Index is expected also to trend up to 48.8 from 47.7 in the previous month.

However, the major looks more exposed to the downside on the back of divergent monetary policy outlooks between Fed and ECB, especially with markets seeing a Fed June rate hike as a done deal.

Ahead if the ZEW surveys, Germany’s final GDP figures will be released, which is expected to have limited impact on the EUR/USD pair. While the US new home sales data will be published in the NA session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1241/55 (daily R1/ 10-DMA). A break beyond the last, doors will open for a test of 1.1285/1.1300 (1h 200-SMA / round number). On the flip side, the immediate support is placed at 1.1185 (100-DMA) below which at 1.1102 (200-DMA) could be tested.


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