When is the German ZEW survey and how could it affect EUR/USD?

German ZEW Survey Overview

Tuesday's economic docket highlights the release of the German ZEW economic survey results for the current month, scheduled at 10:00 GMT. The headline Economic Sentiment Index is expected to rise to 74 in March from 71.2 previous. The Current Situation Sub-Index, which reflects institutional investors’ opinions for the next six months, is anticipated to recover to -62.0 from -67.2 recorded in the previous month.

How could they affect EUR/USD?

An optimistic reading is more likely to be overshadowed by concerns about the suspension of the Oxford/AstraZeneca coronavirus vaccine in several European nations, including Germany. This, in turn, suggests that the path of least resistance for the shared currency is to the downside. Apart from this, the underlying bullish tone surrounding the US dollar might further exert some pressure on the EUR/USD pair.

Meanwhile, Yohay Elam, FXStreet's own analyst offered a brief technical outlook for the major and also outlined important levels to trade the major: "Euro/dollar bounced off the 1.1905 level twice – creating a double-bottom. Can it keep up? Momentum on the four-hour chart has turned to the downside while the currency pair is struggling to hold onto the 50 Simple Moving Average on the four-hour chart."

"Below 1.1905, the next cushion is at 1.1865, followed by 1.1836, which is the 2021 trough. Some resistance awaits at the daily high of 1.1940, followed by 1.1965 and then 1.1990, which worked both as resistance and support so far in March," Yohay added further.

Key Notes:

   •  EUR/USD Forecast: Double bottom in danger as bears accumulate ammunition

   •  Germany’s RKI: COVID-19 cases are growing exponentially again in the country

   •  EUR/USD Price Analysis: Justifies bearish crossover to eye 1.1900 immediate support

About German ZEW

The Economic Sentiment published by the Zentrum für Europäische Wirtschaftsforschung measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic. Generally speaking, an optimistic view is considered as positive (or bullish) for the EUR, whereas a pessimistic view is considered as negative (or bearish).