EUR/USD losing the grip near 1.0650, ZEW eyed

The single currency is navigating a narrow range on Tuesday, taking EUR/USD to the mid-1.0600s ahead of the ZEW survey in Germany and EMU.

EUR/USD attention to ZEW

The pair is extending the bearish note during the first half of the week, looking to consolidate in the 1.0650 region after climbing as high as fresh tops beyond 1.0700 the figure on Monday.

Spot joined the rest of the global markets in the generalized directionless theme that has been prevailing since Monday amidst increasing cautiousness in light of he imminent FOMC meeting on Wednesday.

Yields in German money markets have been supportive of the pair’s up move as of late along with a renewed selling bias surrounding the buck.

Market participants have practically priced in a rate hike by the Fed at tomorrow’s meeting, although the focus of attention should surely shift to the ‘dots plot’ and the Committee’s view on further tightening in the next months.

Looking ahead, the German/EMU ZEW Survey is due ahead of EMU’s Industrial Production figures. Across the pond, February’s Producer Prices will be in the limelight.

EUR/USD levels to watch

At the moment the pair is losing 0.04% at 1.0650 and a break below 1.0619 (55-day sma) would target 1.0611 (short-term support line) en route to 1.0591 (20-day sma). On the upside, the next hurdle aligns at 1.0715 (high Mar.13) ahead of 1.0829 (2017 high Feb.2) and finally 1.0873 (high Dec.8 2016).