EUR/USD: Minor-recovery capped below 1.1350, ZEW in focus

The offered tone around the USD weakened a bit over the last hour, moving the EUR/USD pair slightly off highs to now waver around the daily pivot located at 1.1336.

EUR/USD awaits ZEW, Fed Yellen

Currently, EUR/USD now gains +0.19% to trade at 1.1336, having faced stiff resistance at 1.1343, daily tops. The main currency pair stalled its overnight and took on the recovery mode beyond 1.13 handle, before meeting fresh supply just shy of 1.1350 levels, with the rate now consolidating the renewed gains.

Moreover, risk sentiment recovers driving the Asian equities further into the positive territory, which also weighed down on the funding currency status of the euro somewhat. While a broad based US dollar recovery also collaborated to the halt in the EUR/USD’s recovery mode.

Furthermore, mixed Brexit polls' results also cap the upside in the major, with Two out of three Brexit polls released late-Monday put the 'Remain' camp in the fore-front, while a  third poll showed votes favouring the 'Leave' camp.

Looking ahead, the major closely eyes the fresh fundamental driver in the German ZEW survey ahead of Fed Yellen’s testimony, which will provide fresh insights on the US interest rates outlook.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1370/77 (daily R1/ Jun 3 High). A break beyond the last, doors will open for a test of 1.1400 (psychological levels). On the flip side, the immediate support is placed at 1.1300 (50 & 5-DMA) below which at 1.1276/44 (20 & 100-DMA) could be tested.