EUR/USD struggles to keep gains above key hurdle, German data eyed

• EUR/USD remains firmly in bear grip with the 50-hour average capping upside in Asia. 
• A big beat on the forward-looking German Gfk Consumer Confidence is needed to stall the sell-off. 

EUR/USD is feeling the pull of gravity while heading into the London open. 

The currency pair is currently trading just below 1.08, having hit a high of 1.0815 in Asia. 

The pullback marks another failure on the part of the bulls to keep the pair above the 50-hour moving average located near 1.0810 during the Asian session. 

Traders should note that the pair has charted multiple lower highs just above the 50-hour MA in the last 10 days. 

Focus on German Consumer Confidence

The German Gfk Consumer Confidence Survey, due at 07:00 GMT, is forecasted to show a slight deterioration in the consumer sentiment in March. The index is expected to tick lower to 9.8 from February’s 9.9 reading. 

If the forward-looking number disappoints expectations, the already weak euro could suffer a steep drop toward the psychological support at 1.0750.

Alternatively, a big beat on expectations could yield a notable corrective bounce above the 50-hour MA, currently placed at 1.0805. Germany will also report the Producer Price Index for January at 07:00 GMT. That data, however, isn’t a big market mover. 

Technical levels