EUR/USD keeps 2017 highs near 1.0850, IFO eyed

Pablo Piovano FXStreet

EUR/USD so far manages to keep the trade in the upper bound of the daily range, testing 1.0850 ahead of key German data.

EUR/USD up on ‘Trumpcare’

Spot opened Monday’s session with an important gap to the area near 1.0850, fresh yearly tops, after the House of Republicans voted against the American Health Care Act, known as ‘Trumpcare’ last Friday.

The vote poured cold water over the future implementation of further fiscal measures from the new US administration, triggering a significant risk-off sentiment across the markets.

The US Dollar Index has plummeted after the opening bell in Asia today, dragging the buck to the 99.00 neighbourhood, levels last traded in early November.

Adding extra support to EUR, speculative net shorts have been trimmed to levels last seen in June 2014 during the week ended on March 21 according to the latest CFTC report.

On the data front, the German IFO is due along with the speech by ECB’s P.Praet, while Chicago Fed C.Evans (voter, dovish) is due to speak later in the NA session.

EUR/USD levels to watch

At the moment the pair is up 0.44% at 1.0846 facing the immediate hurdle at 1.0873 (high Dec.8 2016) followed by 1.0882 (200-day sma) and finally 1.1300 (high Nov.9 2016). On the flip side, a breakdown of 1.0838 (low Mar.27) would target 1.0759 (low Mar.24) en route to 1.0704 (low Mar.16).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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