EUR/USD depressed around 1.2340, ignores mixed ZEW

German ZEW came in mixed for the current month.
Economic Sentiment in the euro area beats consensus at 29.3.
ECB minutes on Thursday next big event in the region.

Pablo Piovano FXStreet

The offered note stays the same around the single currency on Tuesday and is now forcing EUR/USD to move further south to fresh session lows in the 1.2340 region.

EUR/USD offered on ZEW, looks to ECB

Spot keeps the negative performance during the first half of the week, this time under extra pressure after the German ZEW Survey showed Current Conditions down to 92.3 while Economic Sentiment came in above estimates at 17.8, albeit lower than January’s 20.4.

Following suit, Economic Sentiment in the euro area surpassed consensus at 29.3 although eased from the previous reading at 31.8.

Furthermore, ZEW sources noted that inflation expectations in both the euro area and Germany have commenced to rise, while the German economy is expected to improve in the medium term.

Nothing else data wise from Euroland today apart from the EcoFin meeting, which is expected to yield nothing relevant, as per usual.

Across the pond, nothing scheduled for today while investors should start to shift their attention to the FOMC minutes, to be published tomorrow.

EUR/USD levels to watch

At the moment, the pair is losing 0.54% at 1.2340 facing immediate contention at 1.2276 (low Feb.14) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the upside, a breakout of 1.2757 (2018 high Feb.16) would target 1.2598 (61.8% Fibo of the 2014-2017 drop) en route to 1.2886 (high Oct.15 2014).

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Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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