EUR/USD breaks higher to test 1.1200, ZEW eyed

The overnight consolidation phase ended post-China open and the EUR/USD pair broke higher to 1.12 handle in the last hour, with the prices having found strong bids near 1.1180 region

EUR/USD eyes a break above 100-DMA at 1.1203

Currently, EUR/USD advances 0.10% to 1.1195, having test 1.1200 levels in the last hour. The main currency pair picked-up significant strength during the mid-Asian trades, and now looks to regain 100-DMA amid persistent USD weakness and risk-off markets. The USD index now drops -0.20% to trade near session lows of 95.36.

Moreover, the euro regains footing against its American counterpart as markets expect the German business sentiment to rebound sharply in July. The headlines number is expected to rebound to 2.1 versus a sharp -6.8% drop seen in June.

Further, the major will also get influenced by the US CPI data, which will provide fresh hints on the Fed rate hike prospects for this year and hence, will drive USD moves.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1203 (100-DMA). A break beyond the last, doors will open for a test of 1.1224 (weekly tops). On the flip side, the immediate support is placed at 1.1140/34 (10 & 200-DMA) below which 1.1100 (round number) could be tested.