EUR/USD: Struggling despite impending bull cross, focus on German ZEW data
- Euro is struggling to find bids despite an impending bull cross of key averages.
- The odds appear stacked in favor of a bearish move.
- A big beat on German ZEW number is needed to mitigate bearish pressures.
EUR/USD is struggling to gather upside traction despite an impending bullish crossover of key moving averages (MA)
The 50-day MA is trending north and is on track to cross above the 100-day MA in the next couple of days.
Bullish crossovers are lagging, but widely followed indicators, and often attract buyers. So far, however, the heightened prospect of a major bull cross has failed to draw bids.
The currency pair is currently sidelined around 1.1068, having eked out marginal gains on Monday.
Bulls need a big beat on Zew survey
The Euro is on the defensive, having carved out a big bearish outside day candle on Friday. Further, the markets are now convinced that the Federal Reserve would not cut rates before the November 2020 US Presidential Elections.
So, the odds appear stacked against the common currency. The bulls, therefore, need the German and Eurozone ZEW surveys for December to blow past expectations.
The gauge for German economic sentiment is seen rising to zero from -2.1 while the Eurozone’s print is expected to drop to -17.0 from -1.0. The ZEW surveys are scheduled for release at 10:00 GMT.
The technical outlook would turn bullish if the pair manages to print a daily close above the Dec. 4 high of 1.1116. On the downside, 1.1040 – the low of Friday's bearish outside day candle – is key support.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
