EUR/USD eyes 1.3580 post-ZEW

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Edinburgh) - The single currency is now accelerating its rebound from the mid-1.3500, lifting the EUR/USD back to the vicinity of 1.3580.

EUR/USD firmer with mixed ZEW

The EUR is gaining traction despite the mixed data from the German ZEW Survey, showing above-estimates Current Situation (67.7) although the Economic Sentiment dropped from previous readings in both Germany and the EMU. The pair continues to be supported by recent comments by ECB officials, although interim gains would be limited as the FOMC gathering looms. Jane Foley. Senior FX Strategist at Rabobank, assessed, “It follows that a strong USD recovery and a resultant drop in the EUR/USD exchange rate would make the ECB’s fight against the deflationary risk an easier task. On the assumption that the Fed does not alter its position much at the June 18 FOMC we expect that the push lower in EUR/USD will be slow. Our 12 mth target lies at EUR/USD1.30. That said, we have edged down our 1 and 3 mth forecasts to 1.3600”.

EUR/USD key levels

As of writing the pair is losing 0.02% at 1.3569 with the immediate support at 1.3521 (low Jun.13) ahead of 1.3512 (low Jun.12) and then 1.3503 (low Jun.5). On the flip side, a breakout of 1.3587 (high Jun.17) would open the door to 1.3590 (Tenkan Sen) and finally 1.3602 (high Jun.10).

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