EUR/USD weaker, challenges 1.1700 ahead of IFO

The pair stays on the defensive near the 1.17 handle on Friday.
The greenback trades firmly near the 94.00 milestone.
German IFO coming up later in the session.

Pablo Piovano FXStreet

The greenback has resumed the upside at the end of the week and is now dragging EUR/USD to test the critical support at 1.1700 the figure.

EUR/USD looks to data, USD

After yesterday’s positive performance, the pair has now reverted the bullish attempt and is now meandering the lower bound of the recent range in the 1.1700 neighbourhood, closer to Wednesday’s multi-month lows at 1.1676.

The bid tone around the greenback continues to rule the sentiment in the global markets and is lifting the US Dollar Index (DXY) to the boundaries of the key barrier at the 94.00 mark amidst a pick up in yields of the US 10-year note to the vicinity of the 3.0% level.

Looking ahead, the German IFO survey is the only release of note in Euroland, while April’s Durable Goods Orders and the final print of the U-Mich index for the month of May are expected across the pond.

In addition, Chief J.Powelll will speak on ‘Financial Stability and Transparency’ at a Riksbank event in Stockholm.

EUR/USD levels to watch

At the moment, the pair is losing 0.11% at 1.1706 and a break below 1.1676 (2018 low May 23) would target 1.1668 (low Oct.8 2017) en route to 1.1659 (monthly low Oct. 27 2017). On the flip side, the initial hurdle lines up at 1.1786 (10-day sma) seconded by 1.1829 (high May 22) and finally 1.1879 (21-day sma).

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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