EUR/USD looks weak after rejection above 1.1100

EUR/USD is sidelined near 1.1080 ahead of the London open.
Single currency failed to keep gains above 1.11 on Tuesday despite upbeat German data.
The sentiment is quite bearish and a deeper drop to the 100-day average could be in the offing.

Omkar Godbole FXStreet Contributor

EUR/USD is operating on slippery grounds, following Tuesday's rejection above 1.11.

The currency pair had risen to a high of 1.1118 during the European trading hours on Tuesday, courtesy of an upbeat German data.

The German ZEW Indicator of Economic Sentiment rose 16 points to 26.7 in January to hit the highest value since July 2015. The ZEW data confirmed the economy bottomed out in the last quarter of 2019 and is witnessing a rebound.

Even so, EUR/USD's break above 1.11 was short-lived. The pair closed the day with 0.11% losses, producing an inverted hammer and confirming a head-and-shoulders breakdown on the daily chart.

The pair's failure to keep gains above 1.11 despite the upbeat German data indicates the sentiment is quite bearish.

As a result, a deeper decline to the 200-day average at 1.1067 cannot be ruled out. At press time, the pair is sidelined near 1.1080.

On the data front, Italy's Business Climate, Industrial Sales and Industrial Orders for November are scheduled for release on Wednesday. These data sets, however, are not big market movers.

Across the pond, the US housing data is due for release and could influence the greenback.

Technical levels

EUR/USD

Overview
Today last price	1.1083
Today Daily Change	-0.0004
Today Daily Change %	-0.04
Today daily open	1.1087

Trends
Daily SMA20	1.1143
Daily SMA50	1.1101
Daily SMA100	1.1072
Daily SMA200	1.1135

Levels
Previous Daily High	1.1118
Previous Daily Low	1.1086
Previous Weekly High	1.1173
Previous Weekly Low	1.1086
Previous Monthly High	1.124
Previous Monthly Low	1.1002
Daily Fibonacci 38.2%	1.1098
Daily Fibonacci 61.8%	1.1106
Daily Pivot Point S1	1.1076
Daily Pivot Point S2	1.1065
Daily Pivot Point S3	1.1044
Daily Pivot Point R1	1.1108
Daily Pivot Point R2	1.1129
Daily Pivot Point R3	1.114

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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