EUR/USD looks to regain 1.1800 on upbeat German IFO?

Having witnessed a volatile NY session a day before, the EUR/USD pair extended its overnight consolidation phase into Asia, as investors gear up for the next event risk in the German IFO business surveys.

EUR/USD supported at hourly 100 & 200-SMA near 1.1780

The V-shaped recovery in the US dollar appears to have lost steam over the last hours, prompting the main currency pair to attempt a tepid-recovery, as the buyers continue to lurk near the resistance-turned-support of hourly 100 and 200-SMA located near 1.1780 levels.

Despite, higher Treasury yields across the curve, the EUR/USD pair remains better bid, as the funding currency EUR derives some support from the mixed sentiment prevalent across the markets, with the Asian equities mostly mixed alongside steadying oil prices.

Moreover, expectations of an improvement in the German business morale also helps boost the sentiment around the common currency. Meanwhile, the uncertainty over the US tax reform looms, which could be one of the factors restricting further recovery in the greenback. The USD index eased-off highs at 93.31 and now trades near 93.20 levels, almost unchanged on the day.

Markets now await the German IFO business climate survey and US data flow for fresh near-term trading opportunities in the pair. Meanwhile, the political developments surrounding Germany and Spain are likely to drive the EUR markets this week.  

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet noted: “Technical indicators in the mentioned chart have entered the positive territory, with the Momentum heading higher, but the RSI losing strength around 55. The range defined in the previous two weeks has it base around 1.1715 and the top in the 1.1870 price zone. A clear break of any of those extremes is required to see some directional strength, something quite unlikely to be trigger by macroeconomic releases this week. Support levels: 1.1750 1.1715 1.1660. Resistance levels: 1.1830 1.1870 1.1900.”