EUR/USD navigating the mid-1.1100s ahead of IFO

The single currency keeps the area of 2-month lows in the mi-1.1100s on Wednesday, with EUR/USDbouncing off the 1.1130 region.

EUR/USD focus on German IFO

Despite today’s small gains on better risk-on sentiment, spot remains on the defensive and retreating for the fourth week in a row along with a renewed buying mood surrounding the greenback.

The extent of today’s recovery will be put to the test later in the NA session however, as FOMC members Harker, Kashkari and Kaplan are due to speak and could add to their peers’ view on a potential rate hike by the Fed at its meeting next month.

EUR/USD levels to watch

The pair is now advancing 0.09% at 1.1151 and a break below 1.1133 (low May 24) would target 1.1103 (200-day sma) en route to 1.1055 (low Mar.16). On the other hand, the initial hurdle aligns at 1.1246 (high May 23) followed by 1.1304 (55-day sma) and finally 1.1332 (20-day sma).