EUR/USD deflates from highs post-ZEW, near 1.1260

After hitting daily highs in the 1.1280 area, EUR/USD has now receded to the 1.1260/55 band following mixed ZEW results.

EUR/USD bid on USD-weakness

The pair keeps the buying sentiment unchanged on Tuesday after the ZEW Survey has showed mixed results for the current month. In fact German, Current Conditions have surpassed estimates at 57.6, while Economic Sentiment missed consensus at 0.5. Further data saw Economic Sentiment in the euro region at 4.6 vs. -6.3 initially estimated.

Later in the NA session, US CPI for the month of July is due along with Building Permits and Housing Starts, and following speeches by FOMC’s Bullard and Lockhart.

EUR/USD levels to watch

The pair is now up 0.68% at 1.1259 and a break above 1.1306 (base of the 8-month rising channel) would open the door to 1.1346 (61.8% Fibo of the May-June down move) and finally 1.1434 (high Jun.24). On the flip side, the immediate support aligns at 1.1179 (38.2% Fibo of the May-June down move) ahead of 1.1115 (20-day sma) and then 1.1092 (200-day sma).