EUR/USD remains weak but still above 1.1200

• Euro consolidates losses against US dollar, on a quiet US session. 
• Bearish pressure still remains in place in EUR/USD.

The EUR/USD pair bottomed after the beginning of the US session at 1.1202 and then tested daily lows but remains on top of 1.1200. The bias continues to point to the downside. 

The euro weakened earlier today following the release of the ZEW survey that showed lower than expected numbers for Germany and the Eurozone. It extended the decline later on the back of a stronger US dollar against majors. The DXY is up 0.20% recovering from weekly lows. 

Despite rising versus European currencies, the greenback is modestly lower against emerging market currencies. The improvement in risk sentiment in Wall Street, where the DOW JONES is up 1.30% after yesterday’s slide, is helping the demand for EM currencies but not the euro. 

Trade tensions between the US and China remain the main theme. Amid the lack of improvement in trade talks and with higher tariffs in place in the US, the deal does not look closer. Today US President Trump again defended its trade policy of higher tariffs. 

EUR/USD Levels to watch 

Price actions remains limited in the EUR/USD pair, moving since May 6 in a range of less than a hundred pips. To the downside, the immediate support is the 1.1200 area followed by 1.1185 and 1.1160 (last week low). While to the upside, if the euro manages to rise back above 1.1220, it would remove the intraday negative tone Above, resistance levels are seen at 1.1240/45 (daily high) and 1.1260.