EUR/USD keeps gains, retakes 1.1050

By FXStreet FXStreet (Edinburgh) – The shared currency is trading on a better mood following the opening bell in London today, taking EUR/USD to test the 1.1050/55 band so far.

EUR/USD vulnerable ahead of IFO

The buying interest around EUR remains firm so far following a weaker initial tone from European equities amidst a profit-taking sentiment. The common currency will remain under pressure however, as the IFO indicator due later in Germany is expected to come in on the soft side.

In the meantime, the pair is trying to put further distance from recent lows just below the 1.1000 support, while market participants now look to the critical FOMC meeting (Wednesday) for further clues on the potential Fed’s lift-off before year-end.

EUR/USD levels to watch

As of writing the pair is up 0.32% at 1.1052 facing the next resistance at 1.1074 (8-month uptrend) followed by 1.1117 (200-day sma) and then 1.1153 (61.8% Fibo of 1.0808-1.1713). On the flip side, a breakdown of 1.1000 (psychological level) would target 1.0915 (low Jul.7) and finally 1.0847 (low Aug.5).
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Source:: FX Street