EUR/USD stays near 2017 tops post-IFO, around 1.1270

EUR/USD stays unstoppable so far this week, now extending its upside to fresh multi-month tops in the boundaries of 1.1270 albeit receding some pips soon afterwards.

EUR/USD bid post-IFO

The pair kept the composure following upbeat results from the German IFO Survey, where Business Expectations (106.5), Current Assessment (123.2) and Business Climate (114.6) all came in above expectations.

Once again, the continuation of the sell off around the greenback is pushing spot higher, this time to levels last seen in early November around 1.1270, and closer to the critical 1.1300 handle.

On the opposite side, the greenback is again testing the area of 6-month lows around 96.70 in terms of the US Dollar Index, eroding the initial optimism.

Collaborating with the upside, EUR stays supported by the speculative community and rising bets on a probable shift from the ECB to a more hawkish tone in the next months.

Data wise in Euroland, advanced PMIs in France and Germany are seen at 54 and 59.4, respectively for the month of May, while EMU’s reading is expected at 57, bettering forecasts. Earlier in the session, German GDP expanded at a seasonally adjusted 0.6% inter-quarter during the January-March period.

Across the pond, Markit’s advanced Manufacturing PMI for the current month is due seconded by New Home Sales and the speech by Minneapolis Fed N.Kashkari (voter, dovish).

EUR/USD levels to watch

At the moment, the pair is advancing 0.19% at 1.1258 facing the next resistance at 1.1267 (2017 high May 23) followed by 1.1300 (high Nov.9 2016) and finally 1.1367 (high Aug.18 2016). On the downside, a break below 1.1073 (76.4% Fibo of 1.1300-1.0339) would target 1.0992 (20-day sma) en route to 1.0826 (200-day sma).