EUR/USD challenges lows near 1.0580, ZEW eyed

The demand for the single currency stays subdued on Tuesday, now taking EUR/USD to the area of 1.0580, or daily lows.

EUR/USD upside capped near 1.0600

After a brief test of the 1.0600 neighbourhood late on Monday, the pair has deflated once again to the current area near 1.0580,where it is looking to consolidate following the opening bell in Europe.

Lack of volatility, a shortened trading week due to Easter festivities and absence of relevant events in both Euroland and the US keep the markets’ sentiment depressed so far this week, while spot continues to gravitate in levels last seen in early March around 1.0580.

The neutral tone from Chair J.Yellen at her speech on Monday was in line with initial market expectations, sustaining the view of gradual rate hike in the next months although sparking no noticeable reaction by investors.

In the data space, the German ZEW survey is due next ahead of US NFIB’s index, JOLTs Job Openings and the speech by Minneapolis Fed N.Kashkari (voter, dovish).

EUR/USD levels to watch

At the moment the pair is losing 0.17% at 1.0579 and a breach of 1.0568 (low Apr.10) would target 1.0523 (low Mar.9) en route to 1.0493 (low Mar.2). On the flip side, the immediate hurdle aligns at 1.0623 (100-day sma) followed by 1.0667 (55-day sma) and finally 1.0690 (high Apr.5).