- The pair exchanges gains with losses around the 1.1300 handle.
- EMU Economic Sentiment improved to -16.6 in February.
- German Current Conditions dropped to 15.0 this month.
After a brief adventure to daily highs beyond 1.1320, EUR/USD has now receded to the 1.1300 neighbourhood in the wake of mixed results from the ZEW Survey.
EUR/USD fades the spike to 1.1320/25
The European currency has given away part of its earlier gains after the ZEW Survey came in on a mixed tone for the current month.
In fact, Economic Sentiment in Germany improved a tad to -13.4 while Current Conditions dropped to 15.0, missing consensus. On the broader euro area, the Economic Sentiment also surprised to the upside, coming in at -16.6.
Earlier in the day, EMU Current Account shrunk at a seasonally adjusted €16.2 billion in December from €22.7 billion in the previous month.
Spot keeps the trade within the familiar range for the time being, always looking to headlines from the US-China trade talks for near term direction.
What to look for around EUR
US-China trade talks will be in centre stage this week and are expected to drive the sentiment in the risk-associated complex. Following recent progress in earlier talks, market participants are now looking at the possibility that both parties could clinch a deal sooner than later. On another direction, EUR should closely follow comments from ECB members regarding the ongoing slowdown in the euro bloc and potential guidance from the ECB in the next months, at a time when speculations that the central bank could refrain from acting on rates this year remain on the rise.
EUR/USD levels to watch
At the moment, the pair is losing 0.02% at 1.1305 and a break below 1.1234 (2019 low Feb.15) would target 1.1215 (2018 low Nov.12) en route to 1.1118 (monthly low Jun.20 2017). On the upside, the next hurdle is located at 1.1339 (high Feb.18) seconded by 1.1356 (23.6% Fibo of the September-November drop) and then 1.1399 (100-day SMA).
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