EUR/USD faded the earlier spike, back around 1.2380 on ZEW

• The pair eases from earlier tops above the 1.2400 handle.
• USD rebounds from lows near the 89.20 region and now tests 89.40.
• German/EMU ZEW survey came in below expectations in April.

After briefly testing fresh daily highs beyond 1.2400 the figure, EUR/USD has now come under renewed selling pressure and has returned to the 1.2385/80 band.

EUR/USD weaker on ZEW

The pair accelerated the downside after the ZEW Survey in Germany and the euro area came in below expectations for the month of April.

In fact, German Current Conditions came in at 87.9 and Economic Sentiment at -8.2 vs. forecasts at 88.0 and -0.8, respectively. In addition, Economic Sentiment in Euroland dropped to 1.9, missing consensus and down from March’s 13.4.

Adding to the pair’s corrective mood, the greenback managed to rebound from daily lows in the 89.20 region when measured by the US Dollar Index (DXY) and is now flirting with the 89.40 zone.

Data wise later in the NA session, US Housing Starts and Building Permits are due, seconded by Industrial and Manufacturing Production.

Furthermore, San Francisco Fed John Williams (voter, centrist), R.Quarles, Philadelphia Fed P.Harker (non voter, hawkish) and Chicago Fed C.Evans (2019 voter, dovish) area all due to speak later in the NA session.

EUR/USD levels to watch

At the moment, the pair is gaining 0.02% at 1.2382 facing the immediate resistance at 1.2414 (high Apr.17) followed by 1.2478 (high Mar.27) and then 1.2538 (high Jan.25). On the downside, a breakdown of 1.2300 (low Apr.12) would target 1.2214 (low Apr.6) en route to 1.2153 (low Mar.1).