EUR/USD side-lined below 5-DMA, ZEW, Draghi eyed

The shared currency recovered losses and now re-attempts gains against the American dollar as we progress towards early Europe, keeping EUR/USD in a tight range below 5-DMA located at 1.1241.

EUR/USD supported above 20-DMA at 1.1221

Currently, EUR/USD trades almost unchanged at 1.1235, moving-off session lows struck previously at 1.1225. The main currency pair fails to take on the recovery above 5-DMA and treads water ahead of key macro releases from Germany and ECB Chief Draghi’s speech, while risk trends continue to dominate markets.

Moreover, the US dollar is seen recovering ground across the board after yesterday’s Fed speak- induced slump, thereby, capping the upside in the EUR/USD pair.

Calendar-wise, we have the German final CPI and WPI due ahead of the European open, while ZEW surveys will remain in focus alongside ECB President Draghi’s speech due later in the session ahead.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1300 (round number). A break beyond the last, doors will open for a test of 1.1343 (Aug 28 high). On the flip side, the immediate support is placed at 1.1221/16 (20 & 10-DMA) below which 1.1175/74 (200 & 100-DMA) could be tested.