EUR/USD flirts with tops near 1.2220 ahead of IFO

• The pair is up smalls in the 1.2220 region. USD slightly offered.
• US 10-year yields eased from tops and trade near 2.96%.
• German IFO next of relevance in the euro area later in the day.

The now softer tone around the greenback is helping EUR/USD to regain some ground lost and lift it to the 1.2215/20 band, or daily peaks.

EUR/USD looks to data, yields

After three consecutive daily pullbacks, the pair is now grabbing some oxygen following earlier multi-week lows in the vicinity of 1.2180.

The recent strong up move in both the greenback and yields of the key US 10-year note appear somewhat alleviated on Tuesday, lending some support to the rest of the risk-associated space.

In fact, tracked by the US Dollar Index, the buck has returned to the 90.90 region after briefly visiting the area beyond the 91.00 milestone for the first time since mid-January, while yields retreated to the 2.96% neighbourhood following a test of the boundaries of the key 3.0% level on Monday.

In the data space, the German IFO survey will be the salient event in Euroland today, whereas the S&P/Case-Shiller Index, New Home Sales and Consumer Sentiment gauged by the Conference Board are all due across the pond.

EUR/USD levels to watch

At the moment, the pair is up 0.05% at 1.2215 facing immediate contention at 1.2185 (low Apr.24) seconded by 1.2165 (low Jan.18) and finally 1.2153 (low Mar.1). On the upside, a break above 1.2314 (21-day sma) would target 1.2321 (10-day sma) en route to 1.2414 (high Apr.17).