EUR/USD: Struggling despite impending bull cross, focus on German ZEW data
|- Euro is struggling to find bids despite an impending bull cross of key averages.
- The odds appear stacked in favor of a bearish move.
- A big beat on German ZEW number is needed to mitigate bearish pressures.
EUR/USD is struggling to gather upside traction despite an impending bullish crossover of key moving averages (MA)
The 50-day MA is trending north and is on track to cross above the 100-day MA in the next couple of days.
Bullish crossovers are lagging, but widely followed indicators, and often attract buyers. So far, however, the heightened prospect of a major bull cross has failed to draw bids.
The currency pair is currently sidelined around 1.1068, having eked out marginal gains on Monday.
Bulls need a big beat on Zew survey
The Euro is on the defensive, having carved out a big bearish outside day candle on Friday. Further, the markets are now convinced that the Federal Reserve would not cut rates before the November 2020 US Presidential Elections.
So, the odds appear stacked against the common currency. The bulls, therefore, need the German and Eurozone ZEW surveys for December to blow past expectations.
The gauge for German economic sentiment is seen rising to zero from -2.1 while the Eurozone’s print is expected to drop to -17.0 from -1.0. The ZEW surveys are scheduled for release at 10:00 GMT.
The technical outlook would turn bullish if the pair manages to print a daily close above the Dec. 4 high of 1.1116. On the downside, 1.1040 – the low of Friday's bearish outside day candle – is key support.
Technical levels
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.