EUR/USD hovering around 1.1070, focus on ZEW economic survey

The EUR/USD pair traded with a slight negative bias and dropped to 1.1060 before retracing quickly to currently trade around 1.1070 region ahead of the release of ZEW Economic Sentiment.

The pair on Monday got a boost on receding jitters from a failed military coup attempt in Turkey. The up-move, however, remained capped as investors now await for the outcome of ECB's monetary policy meeting on Thursday before determining the near-term direction of the major.

On Tuesday, the pair traded in a narrow band and was confined well within Monday's trading range ahead of the German ZEW economic sentiment, which usually overshadows the release of overall Euro-zone sentiment index that would be released at the same time. 

From the US, focus would be on housing starts and building permits data that would allow investors to gauge the health of US housing market and trigger some short-term momentum for the EUR/USD pair. 

Technical levels to watch

On the immediate upside, 200-day SMA near 1.1090-1.1100 region seems to act as immediate resistance, above which the pair could extend the momentum towards its near-term trading range resistance near 1.1170-80 zone.

Meanwhile on the downside, weakness below 1.1050 level might continue to find strong support near 1.1020-15 region, which if broken decisively would open room for extension of the weakening trend towards its next major support near 1.0900 handle.