The shared currency remains entrenched in the negative territory on Tuesday, with EUR/USD now navigating the 1.1115/10 band, or session lows.
EUR/USD ignores upbeat ZEW
Spot remained apathetic today despite the ZEW Survey has surprised markets to the upside for the current month. In fact, German/EMU Economic Sentiment has improved above consensus to 6.2 and 12.3, respectively. German Current Situation has followed suit, up to 59.5 vs. September’s 55.1.
In the meantime, the rally in the greenback remains unabated so far this week, trading in fresh 3-month highs above 97.00 the figure and always bolstered by rising expectations of a rate hike by the Fed at its December meeting.
USD has also found some support in comments by Chicago Fed C.Evans at his speech in Sydney, where he advocated for a gradual tightening albeit he admitted that policy ‘may well be changing soon’.
Ahead in the NA session, the Fed’s Labor Market Conditions Index is only due along with the speech by Minneapolis Fed N.Kashkari (2017 voter, neutral).
EUR/USD levels to watch
The pair is now losing 0.24% at 1.1111 and a break below 1.1101 (low Oct.7) would target 1.1076 (2014-2016 support line) en route to 1.1043 (low Aug.5). On the other hand, the next up barrier is located at 1.1173 (200-day sma) followed by 1.1202 955-day sma) and finally 1.1248 (resistance line off 2016 high).
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