EUR/USD eases to lows near 1.1570 on downbeat ZEW

  • The pair is now losing the grip and retreats to the 1.1570 area.
  • German/EMU ZEW survey came in below expectations today.
  • US Industrial/Manufacturing Production next of relevance in the docket.

The single currency is now losing the grip and is forcing EUR/USD to recede to the 1.1575/70 band in the wake of the publication of the ZEW Survey.

EUR/USD offered post-data

After an ephemeral test of the boundaries of the key barrier at 1.1600 the figure, the pair came under some selling pressure and has now returned to the area of daily lows in the proximity of 1.1570.

EUR accelerated the pullback after German ZEW Survey showed Current Conditions and Economic Sentiment both came in below expectations at 70.1 and -24.7, respectively, for the current month.

On the EMU front, Economic Sentiment dropped to -19.4 and August’s trade surplus in the euro bloc shrunk to €11.7 billion.

In the meantime, Italy, Brexit and geopolitics remain poised to drive the price action around spot in the near term.

EUR/USD levels to watch

At the moment, the pair is losing 0.05% at 1.1574 and a break below 1.1535 (10-day SMA) would aim for 1.1432 (low Oct.9) and finally 1.1323 (200-week SMA). On the opposite direction, the next up barrier aligns at 1.1611 (high Oct.12) seconded by 1.1629 (100-day SMA) and then 1.1735 (high Aug.28).

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