EUR/USD: A phase of consolidation below 1.1160, Ifo eyed

The recovery seen in the EUR/USD pair from multi-week lows appear to have paused near 1.1160 region, as we head into early European trades.

EUR/USD: Eyes 100-DMA to the upside

Currently, EUR/USD trades +0.09% higher at 1.1151, retreating slightly from fresh session highs printed at 1.1158 in the last hour. The main currency pair is seen consolidating its minor-recovery attempt, as favourable sentiment towards risky assets caps further upside in the safe-haven euro.

Moreover, the major takes a breather ahead of the German Ifo business sentiment survey, which is expected to improve in May. Although a downside surprise cannot be ruled out after the German ZEW economic sentiment unexpectedly deteriorated, the Survey showed yesterday.

The Ifo survey for business climate is seen higher at 106.9 points in May, a marginal 0.3 improvement. The current assessment is seen inching up to 113.3, while the expectations expect an improvement to 100.8 in May from 100.4 booked previously.

Further, ongoing strength in the greenback across the board on the back of upbeat US housing data and increased talks of a June Fed hike, is also likely to keep the recovery short-lived.

Besides, Germany’s Ifo surveys, the major will also closely eye ECOFIN meetings and the US goods trade balance and flash services PMI data for further momentum.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1187/90/1.1200 (100 & 5-DMA/ round number). A break beyond the last, doors will open for a test of 1.1232/50 (10-DMA/ psychological levels). On the flip side, the immediate support is placed at 1.1101 (200-DMA) below which at 1.1055 (Mar 16 Low) could be tested.