EUR/USD ahead German ZEW Indicator: Will the bears take the control?
Today in Germany will be released the ZEW Economic Sentiment at 09:00 GMT, which is expected to have a drop from 6.4 to 5.1, after it had a surprise during May, where the reading fell from 11.2. For June, the publication will be dominated by the uncertainty regarding the “Brexit” referendum to be done at United Kingdom this thursday, as the EU countries will be watching closely the polls and latest updates about the issue. That's why the coming release of German ZEW Economic Sentiment could have no major changes.
We can note at H4 chart of EUR/USD that a bearish continuation is ongoing, below a bearish trend line that was projected from the May 3rd session's highs. If June's reading for ZEW is higher than expected, then we can see a rally towards the 1.1380 and 1.1400 levels at least, in a first degree. The worst case scenario will push lower the pair to test the support zone of 1.1247, which would mean a consolidation below the 200 SMA.