EUR/USD eyes 1.1040 ahead of ZEW

EUR/USD is picking up extra pace during the European morning, now flirting with fresh 2017 tops in the 1.1040 area.

EUR/USD attention to ZEW, GDP

The pair advanced to fresh 2017 highs around 1.1040, levels last traded in late November 2016, always propped up by the continuation of the sell off around the greenback.

In fact, when measured by the US Dollar Index (DXY), the buck is now approaching YDT lows in the 98.40/30 band, accentuating the decline from last week’s tops in the boundaries of 99.80.

It is worth recalling that sentiment around EUR has significantly improved after Emmanuel Macron was elected next French President earlier in the month, alleviating risks from the political scenario.

In addition, the speculative community has turned EUR net long for the first time in three years during the week ended on May 9, according to the latest CFTC report, while rumours on the potential shift to a more hawkish message from the ECB in the next months are also lending wings to the European currency.

In the data space, German ZEW survey is expected to surprise to the upside for the current month, while the economy of the region is seen expanding 0.5% QoQ during the March-January period

Across the pond, Housing Starts, Building Permits, Industrial and Manufacturing Production are all due later in the NA session.

EUR/USD levels to watch

At the moment, the pair is advancing 0.51% at 1.1031 and a break above 1.1073 (76.4% Fibo of the 1.1300-1.0339 drop) would target 1.1300 (high Nov.9 2016). On the flip side, the next support aligns at 1.0979 (low May 16) followed by 1.0887 (20-day sma) and finally 1.0838 (low May 11).