EUR/USD clings to intraday gains, approaching 1.1400 handle post-German ZEW

Haresh Menghani FXStreet

• Stalls overnight retracement slide and regains positive traction amid renewed USD selling.
• German ZEW economic sentiment unexpectedly improves and provides an additional boost.

The EUR/USD pair built on its steady intraday climb and recovered a major part of the overnight sharp retracement slide from near three-week tops.

Despite a goodish pickup in the US Treasury bond yields, the US Dollar struggled to build on overnight goodish up-move, led by the latest Brexit drama-led sell-off in the British Pound, and helped the pair to regain positive traction on Tuesday.

The shared currency was further supported by reports that Italy was pushing for deficit target of 2.0% to reach an agreement with the EU, though the optimism was partly offset by concerns over the economic impact of violent protests in France.

Meanwhile, today's mixed German ZEW economic survey results failed to provide any meaningful impetus but remained supportive of the ongoing positive momentum, with bulls now eyeing to reclaim the 1.1400 handle.

Moving ahead, today's US economic docket, featuring the release of Nov. PPI figures, will now be looked upon for some fresh impetus later during the early North-American session.

Technical levels to watch

On a sustained move beyond the 1.1400-1.1410 immediate resistance, the pair is likely to aim towards reclaiming the key 1.1500 psychological mark with some intermediate hurdle near the 1.1455-60 region. On the flip side, the 1.1355-50 region might continue to protect the immediate downside, which if broken is likely to accelerate the fall back towards challenging the 1.1300 round figure mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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