EUR/USD around 1.1920 post-ZEW, now looks to US data

  • The pair keeps the range above 1.19 following mixed ZEW figures.
  • The greenback alternates gains with losses in the 92.70/80 band.
  • EMU’s Economic Sentiment rose more than expected in May.

EUR/USD keeps the familiar range on Tuesday above 1.1900 the figure after mixed results from the ZEW survey for the month of May.

EUR/USD looks to US calendar

Spot remains within range and keeps the area above the 1.1900 milestone during the first half of the week despite mixed results from the ZEW survey and EMU’s data.

In fact, German Economic Sentiment came in at -8.2 for the current month, missing initial consensus, while Current Conditions surprise to the upside at 87.4. The data add to earlier Q1 GDP figures, which came in on a softer tone.

Regarding the broader euro area, Economic Sentiment rose to 2.4 (vs. 2.0 exp.), Industrial Production expanded below estimates 0.5% MoM and 3.0% YoY and flash Q1 GDP figures showed the economy of the region is expected to grow 0.4% QoQ and 2.5% on a yearly basis.

In the meantime, the direction of spot stays unclear so far amidst a better tone in the buck and rising US 10-year yields.

Later in the session, US Retail Sales will be the salient event in the NA session, seconded by the NAHB index, the Empire State manufacturing gauge, TIC Flows and the speech by San Francisco Fed J.Williams (voter, dovish).

EUR/USD levels to watch

At the moment, the pair is up 0.01% at 1.1928 and a breakout of 1.1996 (high May 14) would target 1.2021 (200-day sma) en route to 1.2048 (38.2% Fibo of 1.2413-1.1823). On the other hand, initial contention emerges at 1.1891 (low May 11) seconded by 1.1823 (2018 low May 8) and finally 1.1768 (78.6% Fibo of November-February up move).

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