EURUSD Hits Two-Week Lows As ZEW Economic Sentiment Slumps

EURUSD hits two week-lows after a big miss from the German ZEW economic survey. The Germany ZEW Survey for Economic Sentiment came in at -49.5 below the expectations of -26.4 in March. The Current Situation survey came in at -43.1 below the forecasts of -30. The European Monetary Union ZEW Survey for Economic Sentiment came in at -49.5, below the expectations of 35.4 in March.

EURUSD correction started on March 9th after the pair hit 14-month highs. The global turbulence in the markets shifts investors attention to safe-haven assets such as the US dollar and Japanese Yen.

Analysts now expect the coronavirus spread to pull the EU economy into a recession. Italy, Spain and France face severe pressure amid the coronavirus outbreak as governments lockdown the countries, in an already fragile economy and banking system.

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EURUSD Price Technical Analysis

EURUSD is 1.37% lower at 1.1027 at the daily low as the pressure accelerates after the pair breached below the 100 and 50-day moving averages earlier today. The technical outlook is bearish now, and lower levels can’t be ruled out as more sellers might join the action.  

On the downside, first support for the EURUSD pair stands at 1.1019 the daily low. In case the EURUSD breaks below the next support is at 1.0953 the low from February 28th. Next support stands at 1.0882 the low from February 27th.  

On the other side, initial resistance for EURUSD stands at 1.1044 the 50-day moving average. A break above might challenge the next resistance level at 1.1066 the 100-day moving average. More offers might emerge at 1.1189 the daily top.  

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