EUR/USD offered again near 1.0880, despite upbeat IFO

Dhwani Mehta FXStreet

The EUR/USD pair is seen struggling to extend the bounce above 1.0880, wavering in the familiar range around 1.0860 region, after the bulls found solid support just ahead of 1.0830 levels during the European session.

The spot is seen consolidating its sharp upmove witnessed in the weekly opening trades, after Macron and Le Pen took the lead in the first round of the French election, with the former seen as the favorite in the French presidential race.

Moreover, better-than expected German IFO business climate and current assessment numbers also help keep the bid tone intact around the Euro. German IFO business climate index rise to 112.9 for April

Also, the Euro also finds support from upbeat assessment of the German economy in Q1 by the Bundesbank, alongside persistent weakness in the US dollar across the board.

However, further upside remains capped as investors refrain to create fresh EUR longs, as nervousness creeps into the markets ahead of this week’s tax reform plans announcement by the US President Trump.

Calendar-wise, nothing of note today for the major in the NA session, except for the speech from the FOMC member Kashkari.

EUR/USD Technical Levels

Technical resistances for the pair are aligned at 1.0900/20 (round number/ multi-month tops), 1.0940/50 (Classic R2/ psychological levels) and finally 1.1000 (key resistance). On the flip side, the spot finds next support at 1.0771 (5-DMA), a break below that level could open the door to 1.0731 (key support) and 1.0707/00 (10-DMA).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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