14 Jul 2015
EUR/USD shoots to 1.1038 ahead of ZEW
FXStreet (Mumbai) - The European currency witnessed sharp moves versus the US dollar in the European session, now driving EUR/USD higher towards fresh session highs above 1.10 handle. The major pierced through 1.1000 levels and climbed higher as traders unwound their positions ahead of the crucial ZEW data due out shortly.
EUR/USD back above 1.1000
The EUR/USD pair trades 0.30% higher at 1.1032, retracing from 1.1038 highs. The European currency jolted higher versus the US dollar as traders preferred to remain on the side lines, squaring-off their positions ahead of the crucial German and EZ ZEW data which is expected to worsen.
German ZEW economic sentiment is seen heading down to 30.5 in July from 31.5 measured in June, while the Current Situation Index is also expected to decline to 60.5 from 62.9 in the previous month.
However, the spike in the EUR/USD pair may be short-lived as markets remain cautious as they weigh the road ahead for Greece in terms of implementation and implications of the reforms in exchange for the bailout funds.
While the crucial bridge financing decision is underway as the Euro zone ministers contemplate on it while noting that it’s going to be a complex decision.
Trade ECB meeting with Bednarik, Elam and Pinkert; Greece + Germany + Forex
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1052 (July 7 High) levels, above which gains could be extended to 1.1095 (July 6 High) levels. On the flip side, support is seen at 1.0967 (Today’s Low) below which it could extend losses to 1.0917 (July 7 Low) levels.
EUR/USD back above 1.1000
The EUR/USD pair trades 0.30% higher at 1.1032, retracing from 1.1038 highs. The European currency jolted higher versus the US dollar as traders preferred to remain on the side lines, squaring-off their positions ahead of the crucial German and EZ ZEW data which is expected to worsen.
German ZEW economic sentiment is seen heading down to 30.5 in July from 31.5 measured in June, while the Current Situation Index is also expected to decline to 60.5 from 62.9 in the previous month.
However, the spike in the EUR/USD pair may be short-lived as markets remain cautious as they weigh the road ahead for Greece in terms of implementation and implications of the reforms in exchange for the bailout funds.
While the crucial bridge financing decision is underway as the Euro zone ministers contemplate on it while noting that it’s going to be a complex decision.
Trade ECB meeting with Bednarik, Elam and Pinkert; Greece + Germany + Forex
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1052 (July 7 High) levels, above which gains could be extended to 1.1095 (July 6 High) levels. On the flip side, support is seen at 1.0967 (Today’s Low) below which it could extend losses to 1.0917 (July 7 Low) levels.