EUR/USD closed below 50-DMA for the first time in a month

EUR/USD closed below 50-DMA on Monday for the first time in a month on the back of a political uncertainty in Europe, resurgence of Greek crisis.

Meanwhile, across the pond, things continue to improve each passing day. Trump’s tax talk and realistic approach while dealing with China and Japan revived the reflation trade.

Strong China PPI data released today is positive for the US dollar as well.

Eyes German, Eurozone GDP and German Zew survey

The German economy is seen expanding 1.7% y/y in Q4. Meanwhile, Eurozone GDP is seen unchanged at 0.5% q/q. Zew survey is expected to show a mild improvement in the current situation index and mild deterioration in the economic sentiment index.

Later in the day, the US PPI number and Yellen testimony could influence the dollar demand. A break in the treasury yields above the recent highs could lead to another round of selling in the EUR/USD pair.

EUR/USD Technical Levels

The spot was last seen trading around 1.06 levels. Breach of 50-DMA hurdle of 1.0606 could yield a rally to 1.0634 (5-DMA) and 1.0668 (Feb 10 high). On the other hand, a breakdown of support at 1.0567 (23.6% of Trump sell-off) would expose 1.0511 (Jan 9 low) and 1.05 (zero figure).