EUR/USD keeps red around 1.0620 after German ZEW

The EUR/USD pair maintained softer tone, but remained above 1.0600 handle, following the release of German ZEW confidence survey.

Currently trading around 1.0620 region, the pair failed to gain any traction after German ZEW Economic Sentiment index fell short of consensus estimates and came-in at 13.8 for December. Consensus estimates were anticipating a reading of 14.0 as compared to November’s 13.8. The negative impact, however, got negated by current situation index, which unexpectedly rose to 63.5 versus 59.1 expected and 58.8 recorded in the previous month.

Meanwhile, the greenback, as measured by the overall US Dollar Index, was also seen to recover some of its yesterday's sharp slide, amid expectations that US interest rates would rise at the much-awaited FOMC monetary policy decision on Wednesday, and might have also contributed towards restricting any fresh buying interest.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "As for the technical picture, the 4 hours chart shows that the price is turning lower, hovering around a flat 100 SMA and a bearish 20 SMA, as technical indicators turn lower around neutral territory, reflecting the absence of directional strength. Should the price accelerate its slide through 1.0590, the decline can extend down to 1.0550, en route to the 1.0505/20 region. Above 1.0651, the weekly high, the pair can recover up to 1.0700, where selling interest will likely contain the advance."