EUR/USD: Bulls eyeing a break above 1.10 ahead of GDP, ZEW

The EUR/USD regained poise in Asia and now looks to conquer 1.10 handle ahead of key economic news from the Euroland, after having witnessed a brief consolidative phase in the overnight trades.

EUR/USD cheers broad USD weakness

The spot enters into a third consecutive day of gains as the greenback continues to remain broadly sold-off into weak US fundamentals, dwindling June Fed rate hike bets and on Trump’s latest controversy. Meanwhile, the USD index meanders near five-day lows of 99.68, looking to test 99.50 support.

The US dollar came under renewed selling pressure in Asia, after headlines hit the wires that the US President Trump reportedly disclosed classified information to Russian officials.  Meanwhile, recent series of weak US macro data, including the latest Empire Statement manufacturing index disappointment, also weighs down on the buck amid tumbling treasury yields.

The major now awaits the Eurozone flash GDP report and ZEW surveys for next push above 1.10 handle. Also, a flurry of US economic releases due on the cards today may exacerbate the pain in the greenback, providing extra legs to the ongoing bullish momentum in the spot.

EUR/USD Technical Levels

Valeria Bednarik at FXStreet notes, “from a technical point of view, the pair retains its bullish stance, with scope to extend its advance beyond the yearly high set earlier this month at 1.1020. Technical indicators in the 4 hours, have eased within overbought readings, but are far from changing course, whist the 20 and 100 SMA advanced below the current level, both now in the 1.0900 region. Stops have likely increased above 1.1020, last week's peak, with and advance beyond it probably resulting in an upward acceleration towards 1.1060. Support levels: 1.930 1.0890 1.0850 Resistance levels: 1.0990 1.1020 1.1060.”