Home EUR/USD: Above 50-day MA, holds rising trendline ahead of German ZEW survey release
FXStreet News

EUR/USD: Above 50-day MA, holds rising trendline ahead of German ZEW survey release

  • EUR/USD holds above 50-day MA and the rising trendline after Draghi’s testimony.
  • A better-than-expected German ZEW survey would embolden EUR bulls.

The EUR/USD closed above the 50-day moving average (MA) for the first time since April 19 and traded flat-lined around 1.1750 in Asia.

The post-payrolls sell-off in the USD continued on Monday, pushing the EUR/USD to a high of 1.1791. Further, Further, a better-than-expected Eurozone Sentix reading likely added to the bid tone around the EUR.

However, the ascent was short-lived and the pair fell back to 1.1750, possibly due to Draghi’s comments that rates would need to stay low for a while.

While the pullback from 1.1791 to 1.1750 is somewhat discouraging, the probability of a move higher to 1.1852 (June 14 high) still remains high as the pair is holding the ascending trendline (drawn from June 28 low and July 2 low).

The common currency will likely pick up a strong bid should the German ZEW survey, due for release at 09:00 GMT, betters estimates.

EUR/USD Technical Levels

Resistance: 1.1791 (previous day’s high), 1.1852 (June 14 high), 1.1984 (200-day moving average).

Support: 1.1733 (50-day moving average), 1.17 (psychological level), 1.1668 (10-day moving average).

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.