EUR/USD flirting with daily lows near 1.0820

• EUR/USD loses momentum and slips back to 1.0820.
• Dollar-buying, risk-off mood weigh on the pair.
• EMU, Germany ZEW survey next on the docket.

The single currency is prolonging the pessimism in the first half of the week and is now dragging EUR/USD to the area of 1.0820, or daily/weekly lows.

EUR/USD looks to data, COVID-19

EUR/USD is down for the second session in a row on ‘turnaround’ Tuesday, navigating the low-1.0800s on the back of the firm note surrounding the greenback.

In fact, the crisis around crude oil prices and the still unabated concerns around the coronavirus continue to prop up the demand for the safe havens, where investors’ preference remains on the buck.

Later in the session, all the attention will be on the publication of the Economic Sentiment tracked by the ZEW survey in both Germany and the broader Euroland for the current month. Moving forward, investors are expected to scrutinize the Eurogroup meeting on Thursday, with the debate of potential extra stimulus aimed at helping in the economic recovery of the coronavirus aftermath on top of the agenda.

What to look for around EUR

The euro remains on a bearish note at the beginning of the week, always looking to developments from the coronavirus and its impact on the economy as the main driver of both sentiment and price action. On the more macro view, the single currency is expected to remain under scrutiny in the next periods in light of the forecasted contraction in the economy of the region in the first half of the year, relegating hopes of a strong recovery to Q3 and/or Q4.

EUR/USD levels to watch

At the moment, the pair is losing 0.32% at 1.0825 and faces immediate contention at 1.0812 (weekly low Apr.17) followed by 1.0768 (monthly low Apr.6) and finally 1.0635 (2020 low Mar.23). On the upside, a breakout of 1.0990 (weekly/monthly high Apr.15) would target 1.1048 (200-day SMA) en route to 1.1147 (weekly high Mar.27).