EUR/USD extends the bullish break to 1.0650, ZEW in focus

Dhwani Mehta FXStreet

A fresh bout of USD selling across the board helped EUR/USD to extend the break above 1.06 handle, as focus remains on the upcoming macro news for further momentum.

EUR/USD regains 5-DMA and beyond

Currently, the spot now advances +0.44% to flirt with daily highs of 1.0650 reached some minutes ago. The EUR/USD pair broke the overnight consolidative mode to the upside and rallied sharply higher, in response to aggressive broad USD sell-off and negative Asian equities, as investors remain on the back foot ahead of the much-awaited UK PM May’s speech.

Moreover, expectations of an improvement in the German ZEW economic sentiment figures can be also partly attributed to the latest leg higher in the main currency pair, as we head towards the European opening bells. The German ZEW headline numbers are expected to arrive at 18.9 for January versus 13.8 last.

Besides, the German macro news, we have the US regional manufacturing index and a couple of Fedspeaks due later in the NA session. While markets may closely watch out for EUR/GBP moves on the UK PM May’s speech for any impact on the euro.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0667 (daily R2). A break beyond the last, doors will open for a test of 1.0687 (5-week tops) and from there to 1.0700 (zero figure). On the flip side, the immediate support is placed at 1.0591 (10-DMA) below which 1.0553 (50-DMA) and 1.0536 (20-DMA) could be tested.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.0680

60% Bullish
20% Bearish
20% Sideways

Bias Bullish

1 Month

Avg Forecast 1.0574

35% Bullish
53% Bearish
12% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.0395

9% Bullish
59% Bearish
32% Sideways

Bias Bearish

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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