EUR/USD: Back above 50-day MA ahead of German ZEW Survey

• EUR/USD is attempting a convincing move above the 50-day average. 
• German ZEW Survey for January is expected to show an improvement in the economic sentiment. 
• A big beat on expectations will likely bode well for the single currency. 

The single currency is showing signs of life ahead of the key German data, as EUR/USD is looking to post a convincing move above the 50-day moving average (MA) at 1.1094. 

The pair is currently trading at 1.11, having hit a 3.5-week low of 1.1077 on Monday. 

Eyes German ZEW

The ZEW Financial Market Survey is an aggregation of the sentiments of approximately 350 economists and analysts on the economic future of Germany, the Eurozone's manufacturing powerhouse, which suffered a marked slowdown in 2019, courtest of the US-China trade tensions. 

The German ZEW survey for January, due at 10:00 GMT, is forecasted to show improvement, with the Economic Sentiment index rising to 15.0 from 10.7 in December. Meanwhile, the Current Situation index is seen improving to -13.8 from -19.9. 

A big beat on expectations would reinforce expectations of a notable economic rebound in 2020 and will likely put a strong bid under the common currency. 

From a technical perspective, a close above 1.1173 (Jan. 16 high) is needed to invalidate the lower highs set up and confirm a bullish reversal. 

If the data disappoints expectations, the pair could challenge Monday's low of 1.1077 and may extend the decline to the 100-day MA at 1.1066.

Technical levels