EUR/USD cracks 100-DMA support ahead of ZEW

A renewed bout of buying interest gripped the USD over the last hour, knocking-off EUR/USD to the lowest levels since March-end.

EUR/USD: 200-DMA next in focus

Currently, EUR/USD drops -0.42% to 1.1174, hovering close to fresh eight-week lows struck at 1.1171 last minutes. The main currency pair failed to hold 1.12 barrier and resumed the recent downward spiral as the greenback picked-up significant strength against its main rivals, sending the US dollar index +0.30% higher above 95.50 levels.
Moreover, a rebound staged by the European equity markets brought renewed optimism into markets and diminished the safe-haven bids for the euro, thereby weighed heavily on the EUR/USD pair.

Meanwhile, markets completely shrugged-off unchanged German GDP data and now eagerly await the ZEW survey, in a bid to provide the much-needed respite to the EUR bulls. The headline economic sentiment is seen higher at 12.0 in May from 11.2 measured in April, while the Current Situation Index is expected also to trend up to 48.8 from 47.7 in the previous month.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1241/52 (daily R1/ 10-DMA). A break beyond the last, doors will open for a test of 1.1280/1.1300 (1h 200-SMA / round number). On the flip side, the immediate support is placed at 1.1151 (week-ended Mar 27 Low) below which at 1.1102 (200-DMA) could be tested.