EUR/USD Faces 1.160 Resistance Before ZEW Data Release

EUR/USD Faces Resistance Near 1.160 Ahead of Potentially Disappointing ZEW Data

The EUR/USD currency pair remains capped below 1.160 during early Tuesday trading as markets await the release of the ZEW Economic Sentiment Survey for Germany and the Eurozone. Analysts are cautioning that the report may fall short of expectations, adding pressure on the Euro and pausing the recent bullish momentum.

ZEW Sentiment Report in Focus

The ZEW survey is a leading indicator of economic confidence across Europe. Market expectations are moderately optimistic, but any disappointment in economic sentiment could lead to fresh selling in the EUR/USD pair. With sentiment still recovering across the Eurozone, today’s ZEW results may serve as a litmus test for Euro resilience.

Upside Risks Remain, But Capped

Despite the current pause, upside risks for EUR/USD haven't entirely disappeared. Potential triggers include:

Disappointing trade news from Canada, which could dampen global risk appetite and impact USD strength.
Stabilization in Middle East tensions, potentially lowering oil prices, which may also reduce pressure on the Eurozone economy.

However, these factors remain uncertain, and traders are showing hesitation in pushing the pair beyond the psychological 1.160 barrier.

Technical Outlook: EUR/USD

Immediate Resistance: 1.1600
Support Levels: 1.1530, 1.1490
Bias: Cautiously neutral, pending ZEW and geopolitical outcomes

EUR/USD remains within a consolidation range, with momentum favoring a sideways move unless fresh macro data provides a catalyst.

Conclusion: Euro Cautious Ahead of Key Sentiment Data

The Euro's recent rally appears to have paused as ZEW sentiment data poses downside risk, while geopolitical and trade factors create mixed market conditions. Traders are advised to monitor today’s data closely for short-term directional cues in EUR/USD.