EUR/USD - Rejected at 5-DMA despite ‘outside day’ candle

Despite Monday’s outside day/engulfing candle, the EUR/USD pair failed to sustain gains above the 5-DMA level of 1.0640 levels in the Asian session. 

Eyes German CPI and Zew survey

The immediate focus is on the German CPI, which is likely to show the cost of living rose 0.8% y/y in November. Later in the day, Zew survey indices could influence the pair. 

However, the pair may witness lacklustre trading on account of the caution ahead of the FOMC rate decision due tomorrow. 

EUR/USD Technical Levels

The spot was last seen trading around 1.0633. A break below 1.06 (zero figure) could yield a sell-off to 1.0553 (Nov 30 low), under which losses could be extended to 1.0526 (Monday’s low). On the higher side, break above 1.0640 (5-DM) would expose 1.0661 (10-DMA) and 1.07 (zero figure).