German ZEW preview: What to expect of EUR/USD?
|The EUR/USD pair ran through fresh offers in early Europe, having failed to take-out the 200-DMA resistance located at 1.1087. The major is seen testing lows near 1.1060 region as the greenback picked-up strength against its major peers amid a negative start on the European markets.
Attention now turns towards the German ZEW economic sentiment for June, which will be reported at 09.00GMT later in the EU session.
German ZEW sentiment to turn lower in June
The ZEW will release its Economic Sentiment Index for the next six months for Germany, as well as the Current Situation Index, reflecting institutional investors' opinions. The headline economic sentiment index is seen dropping sharply to 8.2 in June after a solid rebound to 19.2 booked in May.
Analysts at Danske Bank note, “The German ZEW expectations index is due to be released at 11:00 CET and is estimated to fall back to 9.0 due to the Brexit vote, having rebounded last month to 19.2.”
EUR/USD: Technical levels
Haresh Menghani, Analyst at FXStreet explains, “The pair has repeatedly managed to bounce off the lower end of the trading range support near 1.1020-15 region, which remains immediate downside support to watch for. A convincing break below this immediate strong support now seems to open room for further near-term depreciating move for the pair, possibly back towards Brexit-led swing lows support near 1.0900 handle.”
“Meanwhile on the upside, momentum above the very important 200-day SMA resistance near 1.1100 region and a follow through buying interest above 1.1115-20 horizontal resistance has the potential to continue boosting the pair. However, any bullish traction might continue to confront strong resistance at the top end of the trading range, near 1.1170-80 region.”
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