When is the German ZEW Survey and how could it affect the Euro?

German ZEW Survey Overview

The Zentrum für Europäische Wirtschaftsforschung (ZEW) will release its German Economic Sentiment Index and the Current Situation Index for May at 09:00 GMT later on Tuesday.

ZEW Survey – Economic Sentiment Index for Germany is expected to fall to -19.8 in May, from 17.2 in April. Meanwhile, the Current Situation Sub-Index is expected to drop to -77.5 in the reported month, down from the previous reading of -73.7.

ZEW Survey – Economic Sentiment in Eurozone is expected to decline to -20, slightly improving from -20.4 previously.

How could the German ZEW Survey affect EUR/USD?

EUR/USD trades on a negative note on the day in the lead up to ZEW Survey. The major pair declines as tensions between the United States (US) and Iran remain high, boosting demand for a safe-haven currency such as the US Dollar (USD).

If data comes in better than expected, it could lift the Euro (EUR), with the first upside barrier seen at the May 8 high of 1.1788. The next resistance level emerges at the 1.1800 psychological level, en route to the April 17 high of 1.1849.

To the downside, the May 7 low of 1.1722 will offer some comfort to buyers. Extended losses could see a drop to the 100-day Exponential Moving Average (EMA) of 1.1685, followed by the April 30 low of 1.1655.