EUR/USD struggles for direction below 1.1100 ahead of ZEW
|- EUR/USD is looking to regain the 1.11 mark.
- Risk-off trade continues to prevail in global markets.
- German, EU ZEW Survey next of relevance in the region.
The single currency is debating for a clear direction on Tuesday, taking EUR/USD to the area just below the key barrier at 1.1100 the figure.
EUR/USD now looks to data
The pair is trading a tad higher than Monday’s fresh 2020 lows in the 1.1080/75 band, looking to extend the rebound and regain both the key 1.1100 mark and the 55-day SMA, today at 1.1091.
The resurgence of the risk-off sentiment in the global markets is putting the greenback under downside pressure so far on Tuesday, allowing at the same time some respite for the pair in light of Friday’s sharp pullback.
In the euro-docket, the publication of the ZEW Survey in both Germany and the broader euro area will give a gauge of the economic sentiment in both regions for the current month. Across the pond, there is nothing significant in the calendar.
What to look for around EUR
The pair dropped to fresh yearly lows and lingers over the key 55-day SMA so far this week and always looking to USD-dynamics. Furthermore, the recent price action suggests that the 1.1180 region could be an interim top. In the meantime, markets’ focus is now seen shifting to a more data-dependent stance while the US-China trade front remains muted for the time being. On the more macro view, the slowdown in the region remains far from abated and continues to justify the ‘looser for longer’ monetary stance from the ECB, which is expected to maintain the current ‘wait-and-see’ stance, at least in the near-term, as per the recently published minutes (Accounts) from the December meeting.
EUR/USD levels to watch
At the moment, the pair is gaining 0.02% at 1.1096 and faces the next up barrier at 1.1134 (200-day SMA) followed by 1.1172 (weekly high Jan.16) and finally 1.1186 (61.8% of the 2017-2018 rally). On the downside, a breakdown of 1.1076 (weekly/2020 low Jan.20) would target 1.1066 (100-day SMA) en route to 1.1039 (low Dec.6 2019).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.