EUR/USD down smalls below 1.1200, IFO eyed

The single currency has surrendered part of Friday’s gains vs. the buck, now sending EUR/USD to the area of 1.1190 ahead of the release of the German IFO.

EUR/USD attention to data

Spot has started the week on a negative fashion so far today amidst some tepid recovery in the demand for the greenback, while the US Dollar Index stays close to the critical 97.00 handle.

The upbeat tone around USD has been also supported by earlier comments by San Francisco Fed J.Williams (2018 voter, centrist), who advocated for a gradual tightening by the Federal Reserve while he believes the Fed will start reducing its balance sheet later in the year.

In the meantime, the pair is extending its sideline theme prevailing since late May between 1.1100 and (almost) 1.1300, although the low-1.1200s has been quite a tough barrier for EUR-bulls as of late.

From the positioning view, EUR speculative net longs have retreated to 5-week lows in the week ended on June 20, according to the latest CFTC report.

In the data space, the German IFO indicator is due next, while President Draghi is due to speak at the ‘ECB Forum on Central Banking’ in Portugal. Across the pond, May’s durable goods orders are only due.

EUR/USD levels to watch

At the moment, the pair is losing 0.02% at 1.1193 facing the next up barrier at 1.1205 (20-day sma) seconded by 1.1296 (2017 high Jun.14) and finally 1.1300 (high Nov.9). On the other hand, a breakdown of 1.1130 (low Jun.15) would target 1.1108 (low May 30) en route to 1.1073 (76.4% Fibo of 1.1300-1.0339).