EUR/USD to extend its decline on a break below 1.1780

EUR/USD is under pressure amid tepid German data. The pair is trading around the 1.1800 level, struggling around the 38.2% retracement of its latest bullish run measured between 1.1602 and 1.1919 at 1.1798, FXStreet’s Chief Analyst Valeria Bednarik reports. 

Key quotes

“The German ZEW Survey came in worse than anticipated. The Economic Sentiment in the country contracted to 39 in November from 56.1 in the previous month, while the assessment of the current situation came in at -64.3, down from -59.5. For the EU, Economic Sentiment fell to 32.8.”

“The 4-hour chart shows that the EUR/USD is at risk of losing ground, as a bullish 20 SMA capped advances throughout the day. The pair, however, remains above the 100 and 200 SMA, which lack directional strength. Technical indicators in the mentioned time-frame are flat around their mid-lines.”