EUR/USD finds support near 1.1380 on ZEW
- The pair drops and tests 1.1380, or session lows.
- German flash GDP seen at 0.5% QoQ in Q2.
- German ZEW survey surpassed expectations in August.
After moving to the 1.1430 area earlier in the session, EUR/USD has now faded that spike and returned to the 1.1385/80 band, or daily lows.
EUR/USD under pressure below 1.1400
The pair has now returned to the negative territory despite the German ZEW survey came in above expectations for the current month.
In fact, German Current Conditions and Economic Sentiment improved to 72.6 and -13.7, respectively. However, and according to the survey, the growth outlook on the German economy has deteriorated.
In the EMU space, Economic Sentiment came in at -11.1 vs. -16.4 expected and July’s -18.7. Still in the euro area, Industrial Production contracted 0.7% MoM and expanded at an annualized 2.5% in June, both prints coming in below forecasts.
In the meantime, spot remains under pressure amidst increasing uncertainty around Turkey and the US-China/US-Turkey trade effervescence.
EUR/USD levels to watch
At the moment, the pair is down 0.16% at 1.1392 facing the next support at 1.1365 (2018 low Aug.13) seconded by 1.1312 (low Jul.5 2017) and then 1.1300 (psychological level). On the upside, a breakout of 1.1433 (high Aug.14) would target 1.1532 (10-day SMA) en route to 1.1609 (21-day SMA).