EUR/USD pressured by ZEW
German ZEW Economic Sentiment index disappointed the markets, unexpectedly falling from 43.2 to 33.1. According to the survey, German economy will not be able to maintain the fast pace of growth. Euro zone ZEW Economic Sentiment index dropped from 61.2 to 55.2.
EUR/USD initially fell to $1.3740 on the news. However, the selling impulse was not strong enough as euro failed to break the Friday’s low of $1.3745. The 100-day MA is acting as a support for now.
From a broader view, the pair is now testing the lower border of the 2013-2014 rising channel to the downside.
According to analysts at Scotiabank, key support lies at the psychological $1.3700 mark, while resistance lies at the 50-day MA at $1.3825.
Chart. Daily EUR/USD