EUR/USD firmer, 1.0700 closer ahead of ZEW

Increasing USD selling is now lifting EUR/USD to test fresh daily tops in the 1.0670 region ahead of key data in Euroland.

EUR/USD attention to releases, May’s speech

The pair has resumed its upside momentum after Monday’s moderate correction lower, gaining nearly a cent since recent lows in the vicinity of 1.0570 and trading closer to the key barrier at 1.0700 the figure, all amidst a broad-based USD weakness.

The selling pressure around the buck – when tracked by the US Dollar Index - has been growing bigger since early trade in Asia, surrendering yesterday’s gains and allowing the current rebound in the risk-associated space.

On the data front, the ZEW Survey in Germany and the euro area is next on tap, while the upcoming speech by UK’s PM Theresa May will also grab investors attention. Across the Atlantic, the NY Empire State index and speeches by New York Fed W.Dudley (permanent voter, centrist) and L.Brainard should keep the focus on the Dollar.

EUR/USD levels to watch

The pair is now gaining 0.55% at 1.0659 and a break above 1.0687 (high Jan.12) would target 1.0798 (high Dec.5) en route to 1.0873 (high Dec.8). On the other hand, the next support lines up at 1.0577 (low Jan.16) followed by 1.0259 (20-day sma) and finally 1.0452 (low Jan.11).