EUR/USD tumbles to lows near 1.2310 post-ZEW
- The pair reverted initial gains and is now trading in daily lows.
- EMU’s Economic Sentiment dropped to 13.4 for the month of March.
- Ahead in the week, the next risk event for EUR will be the FOMC meeting.
The selling pressure around the European currency is now picking up pace and is forcing EUR/USD to drop to the 1.2515/10 band, or session lows.
EUR/USD offered on ZEW, USD stronger
Spot is now trading on a weak note following mixed results from the ZEW Survey in Germany and the euro bloc. In fact, German Economic Sentiment dropped sharply to 5.1 for the current month, while Current Conditions came in at 90.7, a tad above estimates albeit lower than February’s reading.
Still around the ZEW but regarding the euro zone, Economic Sentiment also decreased markedly to 13.4 for the same period.
In the meantime, the pair is now trading within the negative territory, closer to the 1.2300 milestone in response to a bout of buying interest around the greenback, pushing the US Dollar Index (DXY) back above the critical 90.00 handle.
EUR/USD levels to watch
At the moment, the pair is down 0.21% at 1.2310 facing immediate contention at 1.2258 (low Feb.19) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the upside, a break above 1.2414 (high Mar.14) would target 1.2448 (high Mar.8) en route to 1.2557 (2018 high Feb.16).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
