The EUR / USD ran through fresh offers in early Europe, having failed to carry out resistance 200-DMA at 1.1087 located. The main test is seen lows near 1.1060 region as the greenback picked up strength against its major peers amid a negative start in European markets.
Attention is now directed to the German ZEW Economic Sentiment June which was reported in 09.00GMT later in the session of the EU.
German ZEW sentiment to turn downward in June
The ZEW will publish its economic sentiment index for the next six months in the case of Germany and the Present Situation Index, which reflects the views of institutional investors. The economic sentiment index title is dropping sharply to 8.2 in June after a strong rebound of 19.2 booked in May.
Danske Bank analysts note, “The ZEW expectations index German is due to be released at 11:00 CET and is expected to use 9.0 due to vote Brexit, having recovered last month to 19 ,2”.
EUR / USD: Technical levels
Haresh Menghani, Analyst at FXStreet explains, “The couple has managed several times to rebound at the lower end of the trading range support near 1.1020 to 15 region, which is maintained to support the immediate withdrawal to watch for. A break below this compelling strong immediate support now seems open room for further depreciation of short-term movement for the pair, possibly back to Brexit-LED minimum swing support near 1.0900 handle. “
“Meanwhile on the upside, momentum above the important resistance moving average of 200 days, about 1.1100 region and a follow through buying interest above 1.1115 to 20 horizontal resistance It has the potential to continue to drive the pair. However, none of upward traction could continue to face strong resistance at the upper end of the trading range near 1.1170 to 80 region. “