EUR/USD testing highs near 1.1325, ZEW in focus

The ongoing bullish momentum in EUR/USD gains further traction as we progress towards the early European trades, as the US dollar remains on the back foot against its major peers amid improved risk conditions.

EUR/USD supported above 1.1300

Currently, EUR/USD trades 0.10% higher at 1.1324, looking to test the session high printed at 1.1326 earlier on the day. The main currency pair keeps the bid tone intact and attempts a run towards 1.1350 levels on expectations of upbeat ZEW surveys from Germany as well as the Euro zone. The German ZEW survey is expected at 50.8 for April, little changed from 50.7 last month, although expectations are seen edging up from 4.3 to 8.0.

Adding to the upbeat sentiment around the EUR/USD pair, the US dollar remains subdued against a basket of six major currencies, despite hawkish comments from Fed official Rosengren delivered in early Asia. The US dollar index now loses -0.08% to trade around 94.40 levels.

Meanwhile, the major remains largely unperturbed by a better risk tone in the markets as focus now shifts towards the ZEW surveys and the housing data from the US for further momentum on the major.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1335/42 (10-DMA/ 1h 200-SMA). A break beyond the last, doors will open for a test of 1.1393/1.1400 (Apr 13 High/ round number). On the flip side, the immediate support is placed at 1.1300/ 1296 (5-DMA/ 1h 50-SMA) below which at 1.1278/74 (daily S1/ Apr 18 Low) could be tested.