EUR/USD flirting with highs near 1.0740 post-IFO

EUR/USD gained some traction following the release of the German IFO for the current month, advancing to the 1.0740/45 band, or daily peaks.

EUR/USD bid post-IFO

Spot is attempting a bull run after German IFO showed Business Climate and Expectations have come in below expectations, while Current Assessment matched consensus for the month of January.

So far in Euroland, the pair is navigating a narrow range with support emerging near 1.0710, while the upside appears limited around the vicinity of the 1.0740 area.

The greenback is trading on a mild positive bias during the first half of the week, looking to recover further ground after the Trump-led sell off dragged the US Dollar Index (DXY) briefly below the psychological 100.00 handle, all adding to the current downside pressure around the pair.

EUR/USD levels to watch

The pair is now up 0.09% at 1.0741 facing the initial hurdle at 1.0773 (high Jan.23) followed by 1.0798 (high Dec.5) and then 1.0873 (high Dec.8). On the flip side, a break below 1.0682 (low Jan.23) would open the door to 1.0665 (short-term support line) and finally 1.0600 (20-day sma).