EUR/USD within range post-IFO, around 1.1660

The demand for the single currency stays well and sound on Tuesday, with EUR/USD trading in the 1.1660/70 band following the publication of the IFO in Germany.

EUR/USD bid on data

Spot briefly tested the 1.1670 area after upbeat results from the German IFO. In fact, business expectations, current assessment and business climate all came in above estimates at 107.3, 125.4 and 116.0, respectively, for the month of July.

Supporting the pair’s upside, yesterday’s bullish attempt in the greenback has quickly fizzled out, prompting the US Dollar Index to resume the downside and re-focus on the area around 93.70, or multi-month lows.

In the meantime, EUR stays well underpinned by speculative positioning (net longs at highest since December 2011), potential extra gains inferred by the futures markets and the likeliness of the ECB ‘taper tantrum’ starting at some point in H2.

Today’s US data releases include the S&P/Case-Shiller index and July’s consumer confidence measured by the Conference Board

EUR/USD levels to watch

At the moment, the pair is gaining 0.11% at 1.1656 and , a breakout of 1.1684 (high Jul.24) would target 1.1713 (monthly high Aug.24) and then 1.1800 (psychological level). On the other hand, the immediate support aligns at 1.1542 (10-day sma) followed by 1.1477 (low Jul.20) and finally 1.1465 (21-day sma).