EUR/USD buyers appeared near 1.1750, ZEW eyed

The selling bias stays unchanged around the European currency on Tuesday, with EUR/USD now bouncing off the 1.1750 region and flirting with 1.1780.

EUR/USD now looks to ZEW

The continuation of the buying interest around the greenback keeps the pair under pressure so far this week, extending the leg lower for the fourth session in a row after the recent rejection from the 1.1880 zone.

Expectations of the implementation of the Trump’s tax reform by year-end, the likelihood of an upcoming hawkish Fed Chairman (J.Taylor) and (almost priced in) extra tightening by the Federal Reserve in Q4 are all drivers underpinning the upside momentum in the greenback, and thus exerting further downside pressure on spot.

Looking ahead, the German ZEW survey for the current month is expected ahead of the final prints of inflation figures in the euro bloc during last month.

Across the pond, industrial and manufacturing production figures are next on tap, seconded by capacity utilization, the NAHB index, TIC flows and the speech by Dallas Fed R.Kaplan (voter, hawkish).

EUR/USD levels to watch

At the moment, the pair is losing 0.19% at 1.1774 and faces the initial support at 1.1686 (low Oct.6) followed by 1.1662 (low Aug.17) and finally 1.1638 (100-day sma). On the upside, a breakout of 1.1843 (55-day sma) would target 1.1882 (high Oct.12) en route to 1.1911 (high Aug.2).