EUR/USD recovery stalled near 1.1260 ahead of ZEW

• The pair bounces off recent 2018 lows and retests 1.1260.
• The greenback finds support in the vicinity of 97.40 so far.
• German/EMU ZEW survey coming up next in Euroland.

After recording fresh 2018 lows in the boundaries of 1.1220, EUR/USD has managed to regain some traction and advance to the 1.1260 area, where it met some resistance.

EUR/USD looks to trade, data

Spot rebounded from lows in response to positive comments from China’s Xi Jinping, who expressed his willingness to erode differences over the trade dispute with the US. In addition, US VP Pence noted President Trump is looking forward to meet his Chinese peer at the G20 meeting later in the month.

This news helped revert some of the pessimism surrounding the European currency and gave fresh oxygen to the pair.

However, spot is poised to remain under pressure as today is the deadline for the Italian government to submit a revised version of the 2019 draft budget, although hopes for a proposal closer to Brussels’ requirements remain flat so far.

In the data space, German/EMU ZEW survey is coming up next, while Fed speakers are due across the pond later in the day.

EUR/USD levels to watch

At the moment, the pair is up 0.09% at 1.1228 facing the next hurdle at 1.1257 (high Nov.13) seconded by 1.1352 (10-day SMA) and finally 1.1399 (21-day SMA). On the flip side a breakdown of 1.1216 (2018 low Nov.12) would target 1.1188 (61.8% Fibo retracement of the 2017-2018 up move) en route to 1.1118 (low Jun.20 2017).