Forex: EUR/USD at lows after ZEW nice surprise

The EUR/USD went for a spike high to 1.3373 as the ZEW survey got released, but that momentum didn't last long and the market eventually gone back to its lows, around 1.3330.

Economic sentiment in both Germany (from 31.5 to 48.2) and Eurozone (from 31.2 to 42.4) improved in February survey by ZEW, beating consensus of 35.0 and 35.5, respectively. Current situation didn't do as well, dropping from 7.1 to 5.2, instead of rising to 9.0 as expected.

Also out is EMU construction output, contracting -1.7% on the month and falling further in December, from -4.7% to -4.8% (YoY). The Greek current account deficit narrowed from €-0.850B to €-0.534B in December.

“On the upside, break above 1.3400, would ease bear-pressure, however, to revive bulls and shift focus higher, regain of 1.3500 barrier and 50% of 1.3710/1.3305 is required”, wrote Windsor Brokers analyst Slobodan Drvenica, pointing to 1.3265, 1.3220 and possible test of pivotal 1.3185/70 on the downside.