- The pair fades the initial spike to daily highs near 1.1640.
- The greenback manages to bounce off lows and retakes 95.00.
- German ZEW Survey bettered initial estimates for the current month.
After hitting fresh tops near 1.1640 in early trade - coincident with the base of the daily cloud – EUR/USD now came under some selling pressure and it is testing the 1.1600 neighbourhood.
EUR/USD stays bid on ZEW
Despite the correction lower, the pair keeps the bid tone unchanged so far this week, reverting Friday’s important sell-off in the wake of the solid report from the US labour market.
The better mood surrounding the riskier assets has been sustaining the up move in the pair in past hours along with auspicious headlines around the Brexit negotiations.
Additionally, markets appear to be somewhat exhausted from headlines from the US-China trade spat in spite of President Trump slipping the chance of further tariffs on US imports from China.
In the same line, EUR appears supported by results from the German ZEW survey, showing that Current Conditions climbed to 76.0 for the current month and Economic Sentiment improved to -10.6.
EUR/USD levels to watch
At the moment, the pair is gaining 0.11% at 1.1606 facing the next resistance at 1.1659 (high Sep.6) seconded by 1.1734 (high Aug.28) and finally 1.1745 (high Jul.31). On the flip side, a break below 1.1508 (low May 29) would target 1.1449 (50% Fibo of the 2017-2018 up move) and finally 1.1299 (2018 low Aug.15).
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