EUR/USD fails near multi-week tops on mixed ZEW

The buying pressure seen behind the euro eased a bit following the release of mixed ZEW surreys from Germany, sending EUR/USD slightly away from near five-week highs scored last week at 1.0687.

EUR/USD remains capped below 1.0700 on ZEW

Currently, the spot now advances +0.63% to 1.0668, extending the retreat towards the mid-point of 1.06 handle. The EUR bulls were disappointed by a miss on the German ZEW headline numbers, which showed that the economic sentiment improved below expectations for the month of Jan, coming in at 16.6 versus 18.3 expected. While the sub-index current conditions jumped to 77.3 versus 65.0 expected and 63.5 last.

However, the bid tone around EUR/USD remains intact amid massive selling in the US dollar against a basket of major currencies, after stops triggered below 113.80 in USD/JPY and knocked-off the buck along with it. Moreover, risk-off market profile ahead of the UK PM May’s Brexit speech also keeps the sentiment around the funding currency euro somewhat buoyant.

Markets also continue to monitor fresh selling seen behind EUR/GBP, and further GBP moves on the UK PM May’s speech for any “rub-off” effect on the EUR/USD pair.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0700 (round figure). A break beyond the last, doors will open for a test of 1.0746 (Nov 17 high) and from there to 1.0781 (100-DMA). On the flip side, the immediate support is placed at 1.0633 (5-DMA) below which 1.0594 (10-DMA) and 1.0554 (50-DMA) could be tested.