EUR/USD finds support at 1.1050, ZEW in focus

The EUR bulls found some support from the upbeat ECB lending survey results, allowing a minor-recovery attempt in EUR/USD from the mid-point of 1.10 handle.

ZEW to weigh on EUR/USD  

Currently, EUR/USD now trades -0.15% lower at 1.1063, recovering from a dip to 1.1049, session lows. The main currency pair broke the side-trend to the downside and retreated further away from 200-DMA (now at 1.1089) as markets prefer to give up EUR longs heading into the ZEW reports due to be published in less than an hour. The headline German economic sentiment index is seen dropping sharply to 8.2 in June after a solid rebound to 19.2 booked in May.

However, the bulls were rescued by optimistic ECB lending survey, which reveals that corporate and household demand is expected to rise further in Q3. The immediate focus now remains on the upcoming ZEW Survey, which is expected to further intensify risk-off moods across the markets.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1089/1.1100 (200-DMA/ round number). A break beyond the last, doors will open for a test of 1.1177 (50-DMA). On the flip side, the immediate support is placed at 1.1035/21 (Jul 18 & 15 low) below which 1.1000 (round figure) could be tested.