EUR/USD clinches highs near 1.1280 ahead of IFO

The common currency is now gathering further traction, lifting EUR/USD to daily peaks around 1.1280.

EUR/USD focus on German data

The pair is partially recovering Wednesday’s pullback to the 1.1240 area in response to quite a strong pick up in the demand for the US dollar, shedding over a cent since Monday’s tops near 1.1370.

While global markets are still struggling for direction, spot will look to the German IFO in order to gauge the sentiment around the strongest economy of the bloc. Markets’ bets point to an improvement in all of the three components for the current month, which should lend extra support to EUR.

Across the pond, Durable Goods Orders, Initial Claims and Markit’s Services PMI are all due in the NA session.

EUR/USD levels to watch

The pair is now up 0.08% at 1.1273 and a breakout of 1.1357 (high Aug.23) would aim for 1.1434 (high Jun.24) and finally 1.1466 (high Apr.12). On the other hand, the immediate support aligns at 1.1242 (low Aug.24) followed by 1.1228 (2014-2016 support line) and finally 1.1179 (38.2% Fibo of May-June drop).